Markets, Bitcoin ATMs, Bitcoin Bitcoin Depot has booked roughly $3 billion in transactions since its inception in 2016.
Bitcoin (BTC) might have surged above the $100,000 mark final yr, however not all bitcoin-centric companies benefitted from the worth motion.
Bitcoin Depot (BTM), a agency that focuses on promoting bitcoin ATMs, has seen a income loss from $150 million within the fourth quarter of 2022 to $137 million within the fourth quarter of 2024.
The decrease transaction quantity was primarily attributable to regulatory adjustments within the state of California, the agency informed CoinDesk. Furthermore, Bitcoin Depot’s money movement has traditionally been uncorrelated to bitcoin’s worth motion, contended Brandon Mintz, the agency’s president and CEO.
“Even when we saw that crash in 2022, transaction volumes were still growing,” he mentioned.
Bitcoin Depot’s inventory is down roughly 85% because it started buying and selling on the Nasdaq after its merger with a particular objective acquisition firm (SPAC) in 2023. The firm’s market capitalization stands at $30 million.
The agency dismissed the concept that spot bitcoin exchange-traded funds, which launched within the U.S. in January 2024, might have siphoned among the agency’s flows. “Historically, our business is not directly tied to bitcoin price or investment vehicles like ETFs,” mentioned a spokesperson in an emailed assertion. “We haven’t seen evidence that ETFs have impacted our transaction volumes.”
Bitcoin Depot, Mintz mentioned, tends to serve unbanked Americans, in addition to individuals who merely favor to transact in money, aged people who aren’t used to utilizing on-line cost choices, and crypto people who discover giving money for bitcoin extra handy. “It’s a niche customer segment that we’re focused on,” Mintz mentioned.
Bitcoin Depot buys the ATM kiosk from one other firm, however provides the machine’s Bitcoin software program. Prices for model new machines sometimes vary from $5,000 to $7,000, and it takes a few yr for the corporate to interrupt even on the price of a machine as soon as it has been put in.
The ATMs solely promote bitcoin. “We used to offer other cryptocurrencies, but when we went public the SEC was suing a lot of companies for selling other types of cryptos that the SEC claimed were potentially securities, so we decided to go Bitcoin only and avoid that risk,” Mintz mentioned. “We believe it was a smart choice, because we’re attracting people that aren’t very sophisticated traders — this is a very beginner-friendly product.”
Bitcoin Depot has seen nearly $3 billion in transaction quantity since inception in 2016, the corporate’s current investor presentation shows. While the corporate has been principally centered on North America, Mintz floated the concept of increasing internationally, citing market saturation.
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