Bitcoin ATM Operator Coin Cloud Hires Advisers to Rework Debt

[ad_1]

(Bloomberg) — Coin Cloud has tapped M-III Partners and B Riley Securities to help rework about $125 million of debt that the operator of Bitcoin automatic teller kiosks accumulated during a period of aggressive growth, according to people with knowledge of the situation.

A group of the companys lenders is working with restructuring and advisory firm Ducera Partners, said the people, who asked not to be identified because the matter is private. The effort comes as crypto prices have suffered from a year-long meltdown made worse by the spectacular collapse Bahamas-based FTX last week.

Representatives at Coin Cloud, M-III and Ducera did not respond to requests for comment. B Riley declined to comment.

Based in Las Vegas, Nevada, Coin Cloud runs ATM machines that allow people to buy and sell digital assets, including Bitcoin, Ethereum, and stablecoins. The company has kiosks in more than 5,000 locations such as liquor stores and neighborhood bodegas across the US and Brazil. In January he hired Michael Tomlinson — who formerly worked at CoinStar and Redbox — to make digital currency as accessible as renting a DVD at a local grocery store.

But some of Coin Clouds kiosks are located in rural areas that have weak foot traffic, the people said. Transactions through crypto ATMs globally have broadly slowed this year, with volume expressed in dollars falling to $227 million in October, from $349 million in January 2021, according to data from researcher Chainalysis.

The company doesnt have direct exposure to beleaguered firms such as bankrupt Celsius Network or FTX, the people said. The dramatic unraveling of Sam Bankman-Frieds FTX has sparked renewed concerns over contagion risks in the loosely-regulated crypto industry.

Related: FTX Downfall Shows CFTC Needs More Crypto Sway, Chairman Says

2022 Bloomberg LP

[ad_2]