Bitcoin (BTC) may have exceeded the $100,000 threshold last year, but not every business focused on bitcoin reaped the benefits of that price surge.
Bitcoin Depot, a company dedicated to the sale of bitcoin ATMs, reported a decline in revenue from $150 million in Q4 2022 to $137 million in Q4 2024. The decrease in transaction volume was mainly attributed to regulatory shifts in California, according to the firm. Additionally, the company’s cash flow has historically shown little correlation with the price movements of bitcoin, as noted by its president and CEO, Brandon Mintz.
“Even during the market crash in 2022, our transaction volumes continued to increase,” he remarked.
Since its debut on the Nasdaq following a merger with a special purpose acquisition company (SPAC) in 2023, Bitcoin Depot’s stock has plummeted around 85%. The company’s market cap now stands at $30 million.
The firm rejected the notion that the launch of spot bitcoin exchange-traded funds (ETFs) in the U.S. in January 2024 could have diverted business away from them. A company spokesperson stated, “Historically, our operations are not directly linked to bitcoin prices or investment products like ETFs. We have not observed any evidence that ETFs have affected our transaction volumes.”
Mintz highlighted that Bitcoin Depot mainly caters to unbanked Americans, as well as those who prefer cash transactions, seniors who are less familiar with online payment systems, and crypto enthusiasts who find cash-to-bitcoin exchanges more straightforward. “We’re concentrating on a specific customer demographic,” Mintz noted.
Bitcoin Depot purchases ATM kiosks from other companies while providing the software that enables bitcoin transactions. The cost of new machines typically ranges from $5,000 to $7,000, and it usually takes about a year for the company to break even on each machine after installation.
Currently, their ATMs only dispense bitcoin. “Initially, we offered other cryptocurrencies, but the SEC began pursuing legal actions against several companies for trading what it deemed securities. As a result, we pivoted to exclusive bitcoin sales to mitigate that risk,” Mintz explained. “This decision has proven wise, as it appeals to those who are not experienced traders — this is a very accessible product.”
Bitcoin Depot has processed nearly $3 billion in transactions since its establishment in 2016, according to the company’s latest presentation to investors. While it has primarily targeted the North American market, Mintz suggested that international expansion could be considered due to market saturation domestically.