Bitcoin ATM Business Remained Sluggish Through Bull Market

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🚨👀 Bitcoin ATMs are NOT Making Bank! 🤑

Bitcoin ATM Business Remained Sluggish Through Bull Market

What to know:

  • Bitcoin Depot, a firm specializing in bitcoin ATMs, experienced a revenue drop from $150 million in the final quarter of 2022 to $137 million in the final quarter of 2024.
  • The firm holds that company business is uncorrelated to bitcoin’s price action.

Oh dear, it seems that even with the price of Bitcoin soaring above the $100,000 mark, not all bitcoin-centric businesses were swimming in gold coins. In fact, Bitcoin Depot, a company that specializes in selling bitcoin ATMs, has seen a revenue loss from $150 million in the fourth quarter of 2022 to $137 million in the fourth quarter of 2024.

The lower transaction volume was primarily due to regulatory changes in the state of California, the firm told CoinDesk. But fear not, dear readers, for Brandon Mintz, the firm’s president and CEO, is here to tell us that Bitcoin Depot’s cash flow has historically been uncorrelated to bitcoin’s price action. Ah, yes, because nothing says “uncorrelated” like a firm that sells bitcoin ATMs.

“Even when we saw that crash in 2022, transaction volumes were still growing,” Mintz said, trying to sound like a brave adventurer who’s not actually lost in the woods. But, alas, the numbers don’t lie, and Bitcoin Depot’s stock is down roughly 85% since it began trading on the Nasdaq after its merger with a special purpose acquisition company (SPAC) in 2023. The company’s market capitalization stands at a whopping $30 million. Ouch!

But wait, there’s more! The firm dismissed the idea that spot bitcoin exchange-traded funds, which launched in the U.S. in January 2024, may have siphoned some of the firm’s flows. “Historically, our business is not directly tied to bitcoin price or investment vehicles like ETFs,” said a spokesperson in an emailed statement. “We haven’t seen evidence that ETFs have impacted our transaction volumes.” Ah, yes, because nothing says “not directly tied” like a firm that sells bitcoin ATMs and has a CEO who’s trying to sound like a cryptic wizard.

Bitcoin Depot, Mintz said, tends to serve unbanked Americans, as well as people who simply prefer to transact in cash, elderly folks who aren’t used to using online payment options, and crypto folks who find giving cash for bitcoin more convenient. “It’s a niche customer segment that we’re focused on,” Mintz said, trying to sound like a benevolent dictator who’s actually just trying to make a quick buck.

Bitcoin Depot buys the ATM kiosk from another company, but supplies the machine’s Bitcoin software. Prices for brand new machines typically range from $5,000 to $7,000, and it takes about a year for the company to break even on the cost of a machine once it has been installed. Ah, yes, because nothing says “break even” like a firm that’s losing money.

The ATMs only sell 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 said, trying to sound like a wise old sage who’s actually just trying to avoid getting sued.

Bitcoin Depot has seen almost $3 billion in transaction volume since inception in 2016, the company’s recent investor presentation shows. While the company has been mostly focused on North America, Mintz floated the idea of expanding internationally, citing market saturation. Ah, yes, because nothing says “market saturation” like a firm that’s losing money.

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2025-03-24 22:59