Bitcoin (BTC) might have surged above the $100,000 mark final yr, however not all bitcoin-centric companies benefitted from the value 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 resulting from regulatory modifications within the state of California, the agency advised CoinDesk. Moreover, Bitcoin Depot’s money stream has traditionally been uncorrelated to bitcoin’s worth motion, contended Brandon Mintz, the agency’s president and CEO.
“Even after we noticed that crash in 2022, transaction volumes have been nonetheless rising,” 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 function acquisition firm (SPAC) in 2023. The corporate’s market capitalization stands at $30 million.
The agency dismissed the concept spot bitcoin exchange-traded funds, which launched within the U.S. in January 2024, might have siphoned a number of the agency’s flows. “Traditionally, our enterprise isn’t instantly tied to bitcoin worth or funding automobiles like ETFs,” mentioned a spokesperson in an emailed assertion. “We haven’t seen proof that ETFs have impacted our transaction volumes.”
Bitcoin Depot, Mintz mentioned, tends to serve unbanked Individuals, in addition to individuals who merely choose to transact in money, aged of us who aren’t used to utilizing on-line fee choices, and crypto of us who discover giving money for bitcoin extra handy. “It’s a distinct segment buyer section that we’re targeted on,” Mintz mentioned.
Bitcoin Depot buys the ATM kiosk from one other firm, however provides the machine’s Bitcoin software program. Costs for model new machines usually vary from $5,000 to $7,000, and it takes a couple of 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 supply different cryptocurrencies, however after we went public the SEC was suing quite a lot of corporations for promoting different kinds of cryptos that the SEC claimed have been doubtlessly securities, so we determined to go Bitcoin solely and keep away from that threat,” Mintz mentioned. “We imagine it was a sensible alternative, as a result of we’re attracting folks that aren’t very refined merchants — this can be a very beginner-friendly product.”
Bitcoin Depot has seen virtually $3 billion in transaction quantity since inception in 2016, the corporate’s current investor presentation exhibits. Whereas the corporate has been largely targeted on North America, Mintz floated the concept of increasing internationally, citing market saturation.
