Apollo Exits Coinstar: Alaska Native Corporation Acquires Crypto Kiosk Operator in $750M+ Debt Clearance Deal

Deal Structure and Financial Terms

The transaction is structured as a full debt repayment mechanism, with the new owner assuming responsibility for clearing Coinstar’s entire bond obligation in early January 2026.[1] The bonds involved are whole business securitizations—a financing structure backed by the full cash flow of the exchange—meaning the repayment eliminates refinancing risk that had plagued the operator since its 2023 debt restructuring.[1]

Apollo acquired the predecessor company in 2016, when Coinstar operated approximately 24,000 kiosks across North America.[1] By 2023, however, declining cash flows from its core coin-exchange business forced the company into debt reorganization, raising questions about the long-term viability of the asset under Apollo’s ownership.

Strategic Rationale: Why ASRC and Why Now

Arctic Slope Regional Corporation, established in 1972 following the Alaska Native Claims Settlement Act, manages a diversified portfolio spanning construction, petroleum refining, government contracting, and now digital financial services.[1] The acquisition represents ASRC’s expansion into fintech and cryptocurrency infrastructure—sectors experiencing significant institutional capital deployment in 2025-2026.

For Apollo, the sale provides a clean exit from an asset facing structural headwinds. The U.S. penny’s declining utility—exacerbated by the Federal Reserve’s decision to halt new penny production—has eroded Coinstar’s traditional coin-exchange revenue model.[1] By transferring the asset to ASRC, Apollo eliminates the refinancing risk and operational burden while ensuring full debt repayment to bondholders.

Coinstar’s Evolution: From Coin Exchange to Crypto Gateway

Under Apollo’s ownership, Coinstar evolved beyond its legacy coin-counting business. In 2025, the company launched cryptocurrency purchasing capabilities through its kiosk network and mobile application, allowing customers to convert cash directly into digital assets.[1] This pivot reflects broader trends in retail cryptocurrency adoption and the convergence of traditional payment infrastructure with blockchain-based financial services.

The kiosk network—spanning over 24,000 locations—provides ASRC with immediate distribution infrastructure for cryptocurrency onboarding, positioning the Alaska Native corporation as a significant player in the emerging retail crypto-to-fiat gateway market.

Broader M&A Context: PE Portfolio Optimization in 2026

The Coinstar transaction exemplifies private equity’s strategic repositioning in early 2026. As interest rates stabilize and refinancing windows narrow, PE firms are increasingly executing exits from non-core or structurally challenged assets, particularly those dependent on declining consumer behaviors (such as physical currency handling). The deal also reflects growing institutional appetite for alternative ownership structures—in this case, Alaska Native corporations with patient capital and long-term investment horizons.

ASRC’s acquisition of Coinstar signals confidence in cryptocurrency infrastructure as a durable asset class, even as regulatory scrutiny intensifies across U.S. financial services. The transaction also demonstrates how indigenous investment vehicles are increasingly participating in mainstream fintech consolidation.

Key Takeaways for Investors and Deal Professionals

• Debt Resolution: The deal eliminates refinancing risk for Coinstar’s whole business securitization bondholders, providing certainty in an uncertain credit environment.
• Strategic Pivot: ASRC’s entry into cryptocurrency infrastructure signals institutional confidence in retail crypto adoption and kiosk-based onboarding models.
• PE Exit Strategy: Apollo’s divestiture reflects disciplined portfolio management, exiting an asset facing secular headwinds in physical currency handling.
• Regulatory Implications: The transaction occurs amid heightened scrutiny of cryptocurrency service providers; ASRC’s Alaska-based operations may offer regulatory advantages in certain jurisdictions.

The Coinstar acquisition represents a meaningful inflection point in both the private equity exit cycle and the institutional adoption of cryptocurrency infrastructure. As traditional payment networks face disruption, alternative ownership structures—particularly those with patient capital and indigenous community backing—are positioning themselves at the intersection of legacy financial services and emerging digital asset ecosystems.