Polygon Eyes Bitcoin ATM Provider Coinme Acquisition for $100M to $125M: Report

Ethereum Layer-2 network Polygon is reportedly looking to acquire US Bitcoin ATM provider Coinme for a purchase price between $100 million and $125 million.

Sources familiar with the matter told CoinDesk that the ETH scaling network is “close to” acquiring the BTC ATM company, with Architect Partners serving as its financial advisor.

Cryptonews has reached out to Coinme executives for confirmation.

Coinme is one of the earlier entrants in Bitcoin ATM operations in the US. It first launched a crypto kiosk in 2014 and now has more than 50,000 Bitcoin ATM locations across 49 US states.

Is Coinme Halting Bitcoin ATM Operations?

Last month, Washington state’s Department of Financial Institutions (DFI) ordered Coinme to halt all money transmission services. The regulator alleges that the Seattle-based company illegally converted unredeemed customer funds into corporate revenue.

Further, the DFI ordered the firm to repay over $8 million to customers. Coinme reportedly asked customers to purchase paper vouchers at kiosks and redeem them online. However, when the vouchers were unredeemed within a timeframe, Coinme claimed the outstanding balances as its own income.

As a result, Coinme is now facing a potential revocation of its license, a $300,000 fine, and a likely 10-year industry ban for the company and its CEO, Neil Bergquist.

Polygon’s acquisition of Coinme is seen as an important step for both companies, given that Polygon completed a $450 million funding round in 2023, led by Sequoia Capital India.