Bitcoin ATM Industry Struggles Despite Bull Market

Since its launch in 2016, Bitcoin Depot has processed approximately $3 billion in transactions.

Key points:

• Bitcoin Depot, a major Bitcoin ATM provider, saw its revenue decline from $150 million in Q4 2022 to $137 million in Q4 2024.

• The company maintains that its business is not directly tied to Bitcoin's price movements.

While Bitcoin (BTC) surpassed the $100,000 mark last year, not all businesses focused on bitcoin saw gains from the price surge.

Bitcoin Depot (BTM), a company specializing in bitcoin ATMs, experienced a revenue decline from $150 million in Q4 2022 to $137 million in Q4 2024.

According to Bitcoin Depot, the decline in transaction volume was mainly attributed to regulatory changes in California. Additionally, Brandon Mintz, the company's CEO, emphasized that Bitcoin Depot’s cash flow has historically been unaffected by Bitcoin's price movements. He pointed out that transaction volumes continued to grow even during the 2022 crash.

Since its merger with a SPAC in 2023 and subsequent listing on Nasdaq, Bitcoin Depot's stock has dropped by approximately 85%, and the company’s market capitalization now stands at $82 million.

Bitcoin Depot has dismissed the idea that the spot bitcoin ETFs, which launched in the U.S. in January 2024, have had any impact on its transaction volumes. A company spokesperson stated, "Historically, our business is not directly tied to bitcoin price or investment vehicles like ETFs," and emphasized that ETFs haven't affected their transaction volumes.

According to Brandon Mintz, Bitcoin Depot primarily serves unbanked Americans, as well as cash-preferring customers, the elderly who are less familiar with online payment methods, and crypto enthusiasts who find using cash for bitcoin more convenient. "It’s a niche customer segment that we're focused on," Mintz explained.

The company purchases ATM kiosks from other suppliers but provides the Bitcoin software for the machines. New machines typically cost between $5,000 to $7,000, and it takes about a year for the company to break even on a machine’s cost once it's installed.

While Bitcoin Depot initially offered other cryptocurrencies, it pivoted to focus solely on bitcoin after concerns over SEC lawsuits against companies selling cryptos that might be classified as securities. Mintz called this decision a smart choice, as it helped attract beginner-friendly customers.

Since its 2016 launch, Bitcoin Depot has processed nearly $3 billion in transactions, and while its focus has been on North America, Mintz suggested the possibility of international expansion in the future.