Polygon invests $125 million to acquire Coinme? Ethereum L2 directly connects to the US Bitcoin ATM network

According to multiple sources, Ethereum layer 2 network Polygon is advancing a major acquisition plan to purchase US Bitcoin ATM provider Coinme for approximately $100 million to $125 million. Insiders told CoinDesk that the deal is close to completion, with Architect Partners serving as Polygon’s financial advisor. Neither party has officially confirmed the transaction publicly yet.

From an industry impact perspective, if this acquisition goes through, it will become a landmark case of combining Ethereum scaling solutions with traditional crypto infrastructure. Coinme is one of the earliest companies in the US to deploy Bitcoin ATMs. Since 2014, it has operated cryptocurrency self-service terminals, currently deploying over 50,000 Bitcoin ATMs across 49 US states, with extensive coverage and strong user reach.

For Polygon, acquiring Coinme is not just an asset purchase but could also represent a crucial step in connecting on-chain ecosystems with offline fiat on-ramps. Through its Bitcoin ATM network, Polygon has the opportunity to extend its on-chain applications, stablecoins, and payment scenarios directly into the physical world, helping to increase the penetration of Ethereum layer 2 networks in real-world use cases. This strategic layout is also viewed as an important long-term move for Polygon to expand user access points and real-world applications.

However, Coinme is currently facing regulatory pressures. Last month, the Washington State Department of Financial Institutions ordered Coinme to cease all remittance-related services and accused it of counting unconverted customer funds as company revenue. Regulators also demanded that it reimburse over $8 million to customers. Investigations indicate that Coinme’s business model involves paper voucher exchanges, with balances retained by the company when vouchers are not used within the validity period.

In this context, Coinme may face risks such as license revocation, a $300,000 fine, and restrictions on the company and CEO Neil Bergquist from operating. This adds complexity to Polygon’s acquisition motivation, which could be a strategic opportunity during a low-valuation window, but also entails compliance and integration costs.

Notably, Polygon completed a $450 million funding round in 2023, led by Sequoia Capital India, providing ample resources for expansion. If this acquisition is finalized, Polygon could become one of the few EVM networks that simultaneously control on-chain scalability and offline Bitcoin infrastructure.

At the beginning of 2026, Ethereum layer 2 competition is shifting from a purely technical narrative to a battle for real user entry points. This move by Polygon could have a profound impact on the user growth trajectory of the entire crypto ecosystem.