Polygon’s $100M-$125M Power Move: Acquiring Bitcoin ATM Giant Coinme to Dominate Physical Crypto Access

Polygon just placed a nine-figure bet on the real world. The scaling powerhouse is set to acquire Coinme, one of the largest Bitcoin ATM networks in the United States, in a deal valued between $100 million and $125 million. This isn't just an acquisition—it's a bridge from the digital frontier to Main Street.

From Code to Corner Store

The move catapults Polygon's infrastructure directly into physical retail spaces. Forget complex exchanges and seed phrases; users can now onboard with cash at thousands of kiosks nationwide. It bypasses traditional banking hurdles, targeting the underbanked and anyone who prefers tangible transactions in an intangible asset class.

Why Physical Still Matters

Despite DeFi's promise of a borderless future, cash remains king for millions. Coinme's ATM network represents critical on-ramps and off-ramps—the plumbing that connects crypto liquidity to everyday wallets. Polygon isn't just buying machines; it's buying distribution and a massive, untapped user base.

The Consolidation Game

This acquisition signals a new phase of vertical integration. Layer-2 networks are no longer content just scaling transactions; they're building full-stack ecosystems. Control the scaling, control the access, control the flow—it's a playbook straight from the traditional finance handbook, just with more memes and less paperwork.

A cynical observer might note it's another masterclass in 'growth by acquisition'—spending investor capital to buy revenue streams and market share, a tactic so beloved by legacy tech it could bring a tear to a venture capitalist's eye. The real test? Whether these shiny new ATMs drive genuine adoption or just become expensive monuments to a bull market's ambition.

Polygon's vault into the physical realm blurs the line between digital asset and daily utility. If it works, they don't just scale the network—they scale the very idea of cryptocurrency.

TLDR

• Polygon is reportedly close to acquiring Coinme, a major U.S. Bitcoin ATM provider, for $100 million to $125 million.
• Coinme operates over 50,000 Bitcoin ATM locations across 49 U.S. states, making it one of the largest networks in the country.
• Polygon is advised by Architect Partners in the acquisition of Coinme, which represents a move into physical cryptocurrency infrastructure.
• Coinme is currently facing regulatory challenges in Washington state, including a potential $300,000 fine and a ten-year industry ban.
• Despite the regulatory issues, Polygon’s acquisition of Coinme is seen as a strategic step to expand beyond its Ethereum scaling technology.

Polygon, a layer-2 ethereum network, is reportedly close to acquiring U.S. Bitcoin ATM provider Coinme. The deal, which could be worth between $100 million and $125 million, is nearing finalization, according to sources familiar with the matter. Polygon’s acquisition of Coinme marks a move into the physical cryptocurrency infrastructure space, expanding beyond its blockchain scaling technology.

Polygon Negotiates Acquisition of Coinme

Sources indicate that Polygon is “close to” completing the acquisition of Coinme, a well-known bitcoin ATM provider in the U.S. Polygon, which has been scaling Ethereum, aims to strengthen its consumer-facing presence through this deal. Architect Partners is advising Polygon in this acquisition, assisting with the transaction process.

Coinme is one of the largest Bitcoin ATM networks in the U.S., with more than 50,000 locations across 49 states. The company, which launched its first crypto kiosk in 2014, has built a major presence in the Bitcoin ATM industry. This acquisition would significantly expand Polygon’s reach into the physical cryptocurrency sector, complementing its technology-driven blockchain infrastructure.

Coinme Faces Regulatory Challenges

While Polygon moves forward with its acquisition, Coinme faces regulatory scrutiny. The Washington State Department of Financial Institutions (DFI) recently ordered Coinme to halt its money transmission services. The DFI alleges that Coinme converted unredeemed customer funds into corporate revenue.

The regulator has ordered Coinme to repay over $8 million to affected customers. Coinme’s actions involved instructing customers to purchase paper vouchers at kiosks, which could be redeemed online. If the vouchers were not redeemed in time, Coinme claimed the funds as its own, leading to the current legal complications.

Potential Penalties for Coinme

The regulatory issues facing Coinme extend beyond the $8 million repayment. The DFI’s action could result in Coinme losing its money transmission license. Additionally, the company faces a potential fine of $300,000 and a ten-year industry ban for its CEO, Neil Bergquist. These complications could pose a significant hurdle to Coinme’s operations in Washington state.

Despite these regulatory challenges, Polygon’s acquisition of Coinme appears to be progressing. Polygon’s recent $450 million funding round, led by Sequoia Capital India, has provided the network with ample capital to pursue strategic acquisitions. The deal represents an expansion of Polygon’s ambitions beyond its Ethereum scaling focus.

This potential acquisition underscores Polygon’s interest in growing its consumer-facing infrastructure. Coinme’s widespread Bitcoin ATM network WOULD provide a physical presence for Polygon’s blockchain ecosystem.