The Biggest Crypto ATM Machine Provider In The US Coin Cloud Bangkrut!

Crypto ATM Coin Cloud. (Photo; Doc. Coin Cloud)

JAKARTA - Coin Cloud, one of the largest ATM Bitcoin operators in the US and Brazil, filed for bankruptcy on January 8, leaving nearly $500 million in liability. The crypto winter phase and the collapse of major companies such as FTX, Alameda Research, and Blockfi, among others, have resulted in Coin Cloud suffering the consequences.

According to Coin Cloud records, its biggest creditor is Genesis Global Trading, a subsidiary of Digital Currency Group, to whom the company owes more than US $ 100 million (Rp1.5 trillion) for unsecured loans. On the other hand, the second largest creditor, Cole Kepro, was paid around US $ 8.5 million (Rp128 billion), very far from debt arrears on Genesis. According to Coin Cloud, the company has assets of between US $ 50 million (Rp754 billion) and 100 million (Rp1.5 trillion) from around 10,000 creditors.

In January 2022, Coin Cloud presented itself as the largest operator of digital currency machines in the US, which has installed more than 1100 Bitcoin ATM machines worldwide. The company wants to expand the network to a major US retail chain, given the increasing demand for Bitcoin ATM machines during the pandemic, far exceeding the company's expectations.

Coin Cloud companies have statistics showing that they operate more than 5,000 ATM machines spread between the United States and Brazil. These machines support more than 40 cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dogecoin, and much more. In addition, the company also offers a bonus of US$25 (around IDR 377 thousand) in Bitcoin for customers who buy $150 (IDR 2.3 million) cryptocurrencies through their ATM machines.

Nonetheless, the growing cryptocurrency ATM machine industry experienced a sharp decline in mid-2022 due to the crypto cold and price correction of Bitcoin (BTC). As reported by Cryptopotato, the price of Bitcoin lost about 70 percent of its value after hitting a record high of 69,000 US dollars (approximately IDR 1 billion) in November 2021.

The cryptocurrency ATM machine industry is still a growing sector in the crypto world, although service providers have experienced challenges during the recent bearish period.