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Cryptocurrency has experienced quite a turbulent time in the last year or so. That turbulence doesn’t seem to be ending any time soon, unfortunately. Cash Cloud has been one of the few vendors offering up cryptocurrency ATMs in the United States, but that is coming to a close. With the recent announcement of Cash Cloud’s bankruptcy, there very well may be no future for their ATMs.

Why is Cash Cloud filing for bankruptcy? Cash Cloud has a wide support network of creditors and materials manufacturers, and a vast amount of debt to settle. Let’s take a look at the facts surrounding Cash Cloud, and what it means for the individuals using their services.

A Brief History of Cash Cloud

CashCloud, or Coin Cloud, depending on which entity you’re referring to, has been operating Bitcoin ATMs since 2014. Their very first machine was launched inside of the souvenir shop of Viva Vegas.

At the time of Cash Cloud’s first ATM, Bitcoin was only valued at around $600, a far cry from the multiple thousands of dollars it has leaped up to since. As Bitcoin grew, so did Cash Cloud’s business.

The ATMs themselves had the crucial benefit of being one of the few physical locations where someone could purchase cryptocurrency without having to deal with online exchanges. At the height of their power, Cash Cloud ATMs were trading over 40 cryptocurrencies with popular ones like Bitcoin, Ethereum, and Dogecoin being just a few of the selections.

The explosive growth also lead to the creation and installation of over 4,000 ATMs intended for trading cryptocurrencies. What once started as a Las Vegas local installation spread across the country, and even reached countries like Brazil.

The crypto boom from the beginning of the pandemic saw physical ATMs from Cash Cloud explode, with their number doubling over a two-year period. This explosive growth would not last for the company, however.

Cash Cloud in the Aftermath

Following seven years of explosive growth, it seems that Cash Cloud very well may be closing its doors for good. The company has filed for bankruptcy in Nevada courts, with case 23-10423-MKN having hearings throughout the rest of 2023.

Listed court dates start in April and run all the way through December, with the potential for other hearings regarding its fate going into 2024.

Cash Cloud Files for Bankruptcy
Some Bitcoin ATMs offer bi-directional functionality.

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Cash Cloud has had a rough go of things in the last year. Their liquid assets do not match up to what they owe creditors. The company’s Chapter 11 filing coincides with the revelation that it owes Genesis Global Capital over $108 million dollars. The next nearest creditor for Cash Cloud is only owed $8 million, which is still a sizable sum.

From the February 7th filing, it can be gathered that Genesis isn’t the only major creditor left in the lurch. The company owes between an estimated $100 to $500 million dollars, distributed between 5,001 to 10,000 creditors.

Their liquid assets are only valued at $50 to $100 million dollars. Parts of this nebulous language come from the initial phrasing of the court documents submitted for bankruptcy filing. The general public may not know the full details of how much Cash Cloud owes until proceedings are finished.

What Does This Mean for Bitcoin?

The cryptocurrencies in play aren’t likely to be affected by the misfortunes of Cash Cloud. What it does mean for traders is that physical locations to purchase cryptocurrency have slimmed down significantly. The company operates over 4,000 ATMs, and most of the debt carried seems to be centered around the actual production and maintenance of the machines themselves.

Customers will likely have to return to the old-fashioned method of purchasing Bitcoin. Those involved in cryptocurrency shouldn’t despair too much, however.

Banks and vendors like PayPal have added far more robust support for cryptocurrencies. PayPal, in particular, has made it so customers can purchase cryptocurrency like they would any other investment asset, without the need for exchanges and the like.

paypal mobile smartphone
PayPal allows users to buy, sell, and hold cryptocurrency.


The benefit of a physical location cannot be understated. With a such wide-ranging network’s status in the air, it’ll be interesting to see if any competitors or successors step into the void left to fill this particular market niche. Cash Cloud is far from the sole manufacturer operating Bitcoin ATMs. However, they account for a massive 8% of the current market share of all physical machines dealing in cryptocurrency.

What’s Next for Cash Cloud?

Cash Cloud’s future is tenuous at best. Their current valuation and liquid assets are a drop in the bucket compared to what it is owed. The company’s bankruptcy filing comes in the wake of Genesis Global’s very own filing.

Cash Cloud operates an estimated 8% of ATMs in the United States dealing with cryptocurrencies. They also operate ATMs in the country of Brazil. Cash Cloud’s CEO, Chris McAlary is determined that the company is going to rise from the ashes.

It is admirable that Cash Cloud is choosing to rework its debt, rather than magnificently implode like other crypto firms. FTX’s very public dismantling has seemed to have left an indelible mark on the industry.

Cryptocurrency appears to be here for the foreseeable future, and perhaps Cash Cloud has a place alongside it. Whether the organization will be able to operate its ATMs is another matter. Their largest creditor is dead in the water and the company has little to guarantee future funds.

The Impact of the Crypto Winter

Cash Cloud and its creditors are casualties in something analysts call a crypto winter. What is a crypto winter? Crypto winters refer to an extended cooling period, or bear market for those versed in investment. Cryptocurrency is prone to the same pitfalls as regular assets.

The lack of oversight or regulatory bodies has no bearing on the duration of the cooling period. Further, regulatory bodies being involved goes against the mission statement of most cryptocurrencies. A lack of general trading, declining prices, and slowed development, unfortunately, mean that companies operating in the crypto space are in the crossfire.

Cash Cloud is one of many casualties from the recent fallout. The company has vowed to make good on its debts, as well as its persistence in the space. Time will tell if Cash Cloud and the many other crypto companies facing adversity come out in one piece following this.

They aren’t the first and they are far from the last to suffer the effects of the cooling period. Crypto ATMs are still present, and still in operation. But more than 4,000 machines were owned and operated by Cash Cloud, and their fate is up in the air at the time of writing.

Cash Cloud Files for Bankruptcy: A Closer Look at the Crypto ATM Manufacturer’s Hardships FAQs (Frequently Asked Questions) 

Is Bitcoin still being traded?

Bitcoin is still available from all major exchanges. If you’re looking to get into cryptocurrency, there are multiple methods to get into trading. All the major crypto coins are still readily traded even if the mining and minting have slowed down considerably in the last few years.

Is Cash Cloud the only ATM operator for Bitcoin?

Cash Cloud is not the sole operator for crypto ATMs, but they were a fairly prominent fixture. With its machines accounting for 8% of ATMs with a rough estimate of over 4,000 machines in operation across 47 states, Cash Cloud made quite the impact.

Whether those machines will remain in operation in the wake of its Chapter 11 filing is something else entirely. But if you’re looking to purchase or trade crypto at physical locations, there are operators in the United States.

Is the crypto winter still ongoing?

At the time of this writing, yes. The crypto winter is still in full swing and crypto transactions are at a low. Quite a few companies have closed in the wake of the crypto winter, but it operates like any other financial cooling period.

Decentralized finance is still prone to the same pitfalls surrounding traditional investment methods. The only real difference is a lack of watchdog organizations bailing out larger firms.

Can you still purchase Ethereum?

Yes, Ethereum is still being actively traded at all major operational exchanges.

Is Cash Cloud going to continue operating?

Cash Cloud’s debt would need to be massively repaid before the company could operate at its previous capacity. Further, it remains nebulous as to whether they can secure funding as their largest creditor, Genesis, filed bankruptcy mere weeks before them.

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More from History-Computer

  • Gizmodo Available here: https://gizmodo.com/cash-cloud-bitcoin-atm-cryptocurrency-genesis-bankrupt-1850096095
  • PYMNTS Available here: https://www.pymnts.com/cryptocurrency/2023/crypto-atm-operator-cash-cloud-files-for-bankruptcy/
  • Coin Telegraph Available here: https://cointelegraph.com/news/coin-cloud-crypto-atm-operator-files-for-bankruptcy-owes-over-100m-to-genesis
  • United States Bankruptcy Court - District of Nevada Available here: https://www.nvb.uscourts.gov/case-info/mega-cases/cash-cloud/
  • Crypto News Available here: https://crypto.news/cash-cloud-a-bitcoin-atm-operator-files-for-bankruptcy-in-nevada/
  • Globe News Wire Available here: https://www.globenewswire.com/en/news-release/2022/07/29/2488797/0/en/Coin-Cloud-Celebrates-the-8th-Anniversary-of-its-First-Bitcoin-ATM-Installation.html
  • Fin Tech Magazine Available here: https://fintechmagazine.com/crypto/what-is-a-crypto-winter-and-are-we-in-one