What You Need to Know
- Bitcoin Depot, a company focused on bitcoin ATMs, reported a revenue decline from $150 million in Q4 2022 to $137 million in Q4 2024.
- The firm asserts that its business operations do not directly correlate with bitcoin price trends.
Bitcoin (BTC) surged past $100,000 last year, but not all bitcoin-related businesses saw a profit from this increase.
Bitcoin Depot, known for its bitcoin ATMs, has reported a dip in revenues, decreasing from $150 million in late 2022 to $137 million by the end of 2024.
The reduction in transaction volumes can be attributed to regulatory shifts in California, as stated by the company. Brandon Mintz, the president and CEO of Bitcoin Depot, explained that transaction volumes were previously unaffected by bitcoin’s price fluctuations, emphasizing:
“Even when we saw that crash in 2022, transaction volumes were still growing.”
Since going public via a SPAC merger in 2023, Bitcoin Depot’s stock has plummeted nearly 85%, currently valuing the company at $82 million.
Moreover, Bitcoin Depot refuted the notion that new U.S. spot bitcoin ETFs, launched in January 2024, could have diverted their business, stating:
“Historically, our business is not directly tied to bitcoin price or investment vehicles like ETFs. We haven’t seen evidence that ETFs have impacted our transaction volumes.”
The company primarily serves unbanked individuals, cash-preferred customers, and those unfamiliar with online transactions. As Mintz noted:
“It’s a niche customer segment that we’re focused on.”
Bitcoin Depot purchases its ATM kiosks from other companies and provides Bitcoin software for them, with new machine prices sitting between $5,000 and $7,000. They focus exclusively on selling bitcoin to avoid regulatory uncertainties associated with other cryptocurrencies.
Since its inception in 2016, Bitcoin Depot has recorded approximately $3 billion in transactions. Although their focus has been on North America, Mintz hinted at potential international expansion due to market saturation.
