Coinme’s Journey from Bitcoin ATMs to a $100+ Million Acquisition by Polygon Labs
In a significant development for the cryptocurrency industry, Seattle-based Coinme has agreed to be acquired by blockchain payments company Polygon Labs in a deal valued in the nine-figure range, according to Coinme CEO and co-founder Neil Bergquist. The acquisition, announced in January 2026, marks a pivotal moment for Coinme, which has evolved from its humble beginnings with bitcoin ATMs to become the largest crypto cash network in the United States. This deal is part of a larger acquisition strategy by Polygon, which also plans to purchase wallet provider Sequence, with the combined acquisitions valued at more than $250 million. The transaction represents a major milestone for Coinme, which was founded in 2014 and has since built an impressive infrastructure that allows people to purchase cryptocurrency with cash at kiosks through partnerships with established financial services companies like MoneyGram and Coinstar. What makes Coinme particularly valuable is its extensive regulatory framework – the company holds money-transmitter licenses and compliance infrastructure that enables it to operate in 48 U.S. states, a significant achievement in the highly regulated financial sector. This acquisition comes at a time of both triumph and challenge for Coinme, as the company recently surpassed $1 billion in transaction volume and achieved profitability for the first time in 2023, demonstrating the growing mainstream adoption of cryptocurrency services.
The strategic value of this acquisition lies in how it integrates Coinme’s established U.S. regulatory licenses, compliance infrastructure, and extensive cash-to-crypto distribution network with Polygon’s global blockchain payment systems. This combination creates a powerful ecosystem that could potentially transform how everyday consumers interact with digital assets. Polygon, which raised a substantial $450 million funding round in 2022 from high-profile investors including Sequoia Capital and SoftBank, already supports millions of transactions daily for banks, enterprises, and consumer applications. By bringing Coinme under its umbrella, Polygon gains an established entry point into the U.S. market with all the necessary regulatory approvals already in place – something that typically requires years of work and significant investment to build from scratch. For Coinme, becoming part of Polygon offers the resources and global reach to accelerate its mission of making digital assets accessible to everyone. As Bergquist noted in his statement to GeekWire, “As a wholly owned subsidiary of Polygon, Coinme will remain true to who we are, with the same team and mission, now with the resources and reach to take it even further.”
The timing of the acquisition is particularly interesting as it comes shortly after Coinme navigated a regulatory challenge with Washington state authorities. In December 2023, the Washington State Department of Financial Institutions issued a cease-and-desist order against Coinme, alleging that the company had improperly claimed more than $8 million in customer funds as its own income. However, by the end of that month, Coinme had reached an agreement with regulators to pause the temporary order, allowing the company to resume operations in Washington state. Coinme described the situation as an accounting dispute over a discontinued voucher product rather than a fundamental regulatory violation. Importantly, Bergquist clarified that the acquisition deal with Polygon was already in progress before the cease-and-desist order was issued, indicating that the regulatory issue did not derail the acquisition talks. This sequence of events highlights the complex regulatory environment that cryptocurrency companies must navigate, even as they achieve significant business milestones and attract major acquisition interest.
Looking at the broader implications, this acquisition reflects the maturing cryptocurrency industry where regulatory compliance has become a crucial competitive advantage. Coinme’s journey from startup to acquisition target illustrates how building a legitimate, regulated business in the cryptocurrency space can create substantial value. The company raised more than $40 million in funding throughout its history, including a $10 million round in 2021, with backing from notable investors including Pantera Capital, Digital Currency Group, Coinstar, Circle, and MoneyGram. With 53 employees at the time of acquisition, Coinme represents a success story for the Seattle startup ecosystem, something Bergquist explicitly acknowledged in his LinkedIn post about the deal: “A big THANK YOU to Seattle-area Angels. You’re the reason we have a vibrant startup ecosystem (and the reason Coinme exists).” This sentiment underscores the importance of local investor support in building innovative companies that can eventually attract national and global interest.
The acquisition, expected to close in the second quarter of 2026, positions both companies to capitalize on growing regulatory clarity around digital assets, particularly stablecoins. In his LinkedIn post announcing the deal, Bergquist pointed to “clear federal regulatory support for stablecoins, including the GENIUS Act” as creating an environment where “consumers want an alternative to dollars trapped in bank accounts, and they want it now.” This reference to emerging regulatory frameworks suggests that Coinme and Polygon see significant opportunity in the convergence of traditional finance and blockchain technology. Under the terms of the deal, Coinme will continue operating its regulated exchange, wallet, and crypto-as-a-service platform while contributing its licensing, compliance, and payments infrastructure to Polygon Labs’ Open Money Stack. This structure allows Coinme to maintain its identity and specialized focus while becoming part of a larger blockchain ecosystem with global ambitions.
The Coinme acquisition by Polygon represents more than just another fintech deal – it symbolizes the evolution of cryptocurrency from a fringe technology to an increasingly mainstream financial tool. What began as a network of bitcoin ATMs has grown into a regulated financial services company valuable enough to command a nine-figure acquisition price. For Polygon, the acquisition provides immediate access to a compliant U.S. infrastructure that would take years to build internally. For Coinme, joining forces with Polygon offers the scale and resources to accelerate its mission of democratizing access to digital assets. As Bergquist explained, while “Coinme has tackled the regulatory requirements and crypto infrastructure, the customer application layer must catch up.” This insight points to the next frontier in cryptocurrency adoption – creating user experiences that make digital assets as accessible and useful as traditional financial tools. As the cryptocurrency industry continues to mature, this acquisition may be remembered as a significant milestone in bridging the gap between innovative blockchain technology and mainstream financial services, potentially reshaping how millions of people interact with money in an increasingly digital world.
