Nikolas Sargeant
Ethereum layer-2 network Polygon is reportedly in advanced negotiations to acquire US Bitcoin ATM operator Coinme for a purchase price between $100 million and $125 million, according to sources familiar with the matter.
Sources told CoinDesk that the scaling network is "close to" finalizing the acquisition of the cryptocurrency kiosk company, with Architect Partners serving as Polygon's financial advisor on the transaction. The potential deal would bring one of America's largest Bitcoin ATM networks under Polygon's control as blockchain companies expand beyond pure protocol development into consumer-facing infrastructure.
Coinme represents one of the earliest entrants in Bitcoin ATM operations in the United States. The company first launched a cryptocurrency kiosk in 2014 and has expanded to operate more than 50,000 Bitcoin ATM locations across 49 US states, establishing one of the country's most extensive physical cryptocurrency access networks.
However, the acquisition discussions occur amid significant regulatory challenges for Coinme. Last month, Washington state's Department of Financial Institutions ordered Coinme to halt all money transmission services, alleging the Seattle-based company illegally converted unredeemed customer funds into corporate revenue.
The DFI ordered the firm to repay over $8 million to customers. According to the regulator, Coinme instructed customers to purchase paper vouchers at kiosks and redeem them online. When vouchers remained unredeemed within a specified timeframe, Coinme allegedly claimed the outstanding balances as its own income rather than maintaining them as customer funds.
As a result, Coinme now faces potential revocation of its money transmission license, a $300,000 fine, and a likely 10-year industry ban for both the company and its CEO, Neil Bergquist. The regulatory action represents a substantial threat to Coinme's business model and operational continuity in its home state.
Polygon's reported interest in acquiring Coinme despite these regulatory complications suggests the layer-2 network views the Bitcoin ATM infrastructure as strategically valuable, potentially as a consumer onboarding channel or physical presence complementing its blockchain technology. The acquisition would mark a significant diversification for Polygon beyond its core Ethereum scaling technology.
The potential deal follows Polygon's completion of a $450 million funding round in 2023 led by Sequoia Capital India, providing the network with substantial capital to pursue strategic acquisitions. The funding positioned Polygon among the best-capitalized blockchain infrastructure projects and enabled expansion beyond pure protocol development.
