How Coinme’s Neil Bergquist Built a Crypto Empire That Survived Three Market Crashes

The cryptocurrency sector continues to witness an evolution from experimental concept to financial infrastructure. Within this transformation, Neil Bergquist’s journey as co-founder of Coinme offers valuable insights into building sustainable fintech ventures amid regulatory complexity. From incubator director to cryptocurrency pioneer, his path illuminates the nuanced interplay between technological innovation and regulatory integration.

From Tech Incubator to Cryptocurrency Vision

Before establishing Coinme, Bergquist served as managing director at Seattle’s SURF Incubator, fostering hundreds of technology startups. His combined background—a Bachelor’s in Rhetoric and Media Studies and an MBA from Willamette University—provided analytical frameworks that proved valuable when evaluating emergent technologies.

Bitcoin first entered Bergquist’s awareness through a community member in fall 2013. “At the time, we would spend our evenings reading as much as possible about Bitcoin,” he recalls. The catalyst for action came when future co-founder Michael Smyers acquired several Bitcoin ATMs, presenting a tangible opportunity.

Bergquist recognized significant potential: “I had felt, as I was running the incubator, that we had to have one at the incubator because Bitcoin was one of the most disruptive technologies I had ever seen.” This initial assessment would soon transform from theoretical interest to structured business concept.

Regulatory Integration: The Compliance-First Approach

Unlike many tech startups following the “move fast and break things” philosophy, Bergquist quickly recognized that financial innovation demanded methodical regulatory engagement. “At the time, the entrepreneurial mantra was ‘build fast and break things,'” he explains. “Unfortunately, we wanted to operate a money services business in the U.S. If you ‘break things,’ you risk going to jail.”

This realization established a foundational principle that would differentiate Coinme: prioritizing regulatory compliance from inception. Bergquist and Smyers invested substantial time understanding financial regulations and engaged proactively with Washington state regulators, presenting Bitcoin’s potential while emphasizing consumer protection frameworks.

Their diligence yielded results when, on May 1, 2014, Coinme launched the first licensed Bitcoin ATM in the United States—positioning the company among the pioneers in regulated cryptocurrency infrastructure.

Entrepreneurial Persistence Through Market Volatility

The early Coinme years exemplify entrepreneurial persistence through significant challenges. “I had to work nights and weekends to run Coinme for three years while not receiving a paycheck and maintaining a demanding full-time job,” Bergquist recounts.

Financial pressures mounted as the company developed infrastructure for a novel currency exchange system. “We maxed out credit cards, took out high-interest personal loans, negotiated payment plans with critical vendors and did whatever we could to preserve cash,” Bergquist explains.

This commitment extended to personal assets, with Bergquist and his wife investing proceeds from their Seattle home sale into the company during “one of bitcoin’s now-infamous downturns” —demonstrating conviction despite market volatility.

After years of bootstrapping, the breakthrough came in Q1 2017 when Coinme received an influx of cash from a $1 million seed round. This investment came just in time, as the company’s bank account had dwindled to $11. This funding enabled both founders to finally dedicate themselves entirely to growing the company.

Strategic Evolution: From Hardware to Software Infrastructure

A pivotal transformation in Coinme’s development came when the company shifted from deploying proprietary Bitcoin ATMs to developing software that integrated with existing retail kiosks—dramatically expanding potential reach while reducing capital requirements.

This evolution accelerated through strategic partnerships with established financial service providers. In 2021, the company announced a significant collaboration with MoneyGram, enabling cash-to-cryptocurrency exchange at approximately 20,000 MoneyGram locations.

Reflecting on this strategic pivot, Bergquist notes: “We’ve survived three crypto winters, growing to over 40,000 locations where we’ve crypto-enabled existing kiosks and ATMs. This pivot from hardware to software has helped us scale and become profitable.”

B2B Infrastructure: Enabling Broader Adoption

As Coinme matured, Bergquist identified opportunities beyond consumer services. The company developed a comprehensive “Crypto-as-a-Service” platform allowing businesses to integrate cryptocurrency capabilities without building proprietary systems.

Bergquist describes this approach: “Because Coinme has these baskets of infrastructure, we’re able to allow the partner or the token project to really pick and choose the user experience that they want to provide.” This modular architecture enables partners to customize cryptocurrency offerings for specific market needs.

The B2B strategy centers on three fundamental services: payment processing for token purchases, redemption services for token sales, and custody solutions for secure digital asset management. This enterprise offering represents a significant evolution from Coinme’s initial Bitcoin ATM concept.

Leadership Insights: Balancing Vision with Execution

Throughout Coinme’s development, Bergquist has cultivated a leadership approach balancing innovation with implementation. “The number one mistake I see early-stage CEOs make is not prioritizing enough,” he observes. “There are always a hundred things to do, but only a few things you must do.”

This prioritization focus has guided Coinme through regulatory uncertainty and market volatility. Bergquist also maintains balanced perspectives on technology governance. “I think regulators will eventually shut down or require massive modifications to decentralized exchanges,” he assesses. “I understand that software can be an extension of freedom of speech; however, software can also be an environment exploited for nefarious activities.”

This viewpoint has positioned Coinme distinctively—embracing innovation while maintaining compliance with existing financial frameworks. “Coinme prides itself on setting the industry bar when it comes to our focus on regulatory rigor and compliance,” Bergquist emphasizes.

Achievements and Forward Outlook

Coinme celebrated its 10th anniversary in May 2024, marking notable achievements that validate Bergquist’s entrepreneurial approach. “Over the 10 years, we achieved an average annual revenue growth rate of 164%,” Bergquist notes.

The company surpassed $1 billion in total retail cryptocurrency sales, establishing itself as a substantial player in the U.S. cryptocurrency exchange market. Beyond financial metrics, Coinme has received industry recognition from organizations like Deloitte and the Financial Times.

Looking ahead, Bergquist maintains measured optimism about cryptocurrency’s integration potential. “Sometimes it’s more like an iceberg than it is like an earthquake,” he says, reflecting on cryptocurrency’s gradual market progression. “It takes time, slowly grinding its way into existence, and eventually changes the landscape over time.”

Demographic indicators support this perspective. According to Bank of America’s 2024 survey, “28% of investors aged 21 to 43 see greater growth potential in crypto and digital assets, compared to just 4% of those 44 and older.”

Entrepreneurial Guidance: Lessons From Experience

For aspiring entrepreneurs, particularly in regulated industries, Bergquist offers practical insights. “You have to love it. If you don’t love it, you’ll hate it,” he advises. “Starting a business or side hustle can be scary, exhausting and risky, and it will consume whatever you can provide and more.”

This passion must be complemented by methodical validation. “Before diving in head first, start small and validate your key assumptions. Who is my customer? What are they willing to pay for this service? How much does it cost me to provide this service? Is it scalable? Defensible?” 

Perhaps most importantly, he acknowledges that entrepreneurship ultimately requires decisive action despite uncertainty. “At the end of the day, there will always be a lot of reasons why you shouldn’t do it. You eventually just need to do it and trust you’ll figure it out as you go.”

Neil Bergquist’s journey with Coinme illustrates how regulatory engagement and strategic adaptation can transform a cryptocurrency venture from experimental concept to financial infrastructure provider. His approach—balancing innovation with compliance—offers valuable insights into creating sustainable bridges between established systems and emerging financial technologies.