Bitcoin Depot, the largest Bitcoin ATM operator in the United States, stated in its annual report that its revenues have shown no correlation to the volatility of Bitcoin prices. Despite Bitcoin’s significant increase in value in 2023, Bitcoin Depot’s revenue growth only saw a 6% increase. The company attributes this lack of correlation to the fact that a majority of its users utilize their products and services for non-speculative purposes such as money transfers and online purchases.
To mitigate its exposure to Bitcoin price volatility, Bitcoin Depot maintains a relatively low balance of Bitcoin at any given time, usually less than $0.8 million. The company purchases Bitcoin from liquidity providers rather than engaging in mining activities. Bitcoin Depot also outlined two key components of its working capital: Bitcoin held in hot wallets to fulfill user orders, and cash stored in the Bitcoin ATM kiosks. As of December 31, 2023, cash in the ATM kiosks accounted for approximately 21% of the company’s average monthly revenues.
Bitcoin Depot was founded in 2016 and currently operates a global network of Bitcoin ATMs, allowing users to deposit and withdraw money using cash or a debit card. It is the largest cryptocurrency ATM operator worldwide, with over 7,000 ATMs as of April 2024. Its main competitors, CoinFlip and BitStop, operate 4,800 and 2,500 machines respectively. It is worth noting that the global adoption of Bitcoin ATMs experienced a decline in 2023, but Bitcoin Depot CEO Brandon Mintz believes that the industry will see a significant rebound after the upcoming Bitcoin halving event.
It’s surprising that a majority of Bitcoin Depot’s users don’t utilize their services for speculative purposes.
Only 21% of the company’s revenue comes from cash in the ATM kiosks? That’s not very reassuring. 😕
With competitors like CoinFlip and BitStop, Bitcoin Depot should be doing better. Time to up your game, guys.
So, Bitcoin Depot’s revenues don’t correlate with Bitcoin price volatility? Seems like they’re missing out on potential profits. 😒
Why does Bitcoin Depot keep such a low balance of Bitcoin? They should take advantage of the market and increase their holdings. 📉
It’s interesting how Bitcoin Depot’s working capital includes Bitcoin in hot wallets and cash in ATM kiosks.
It’s disappointing to see that Bitcoin Depot’s revenue growth only increased by 6% despite the significant increase in Bitcoin’s value.
Despite the decline in global Bitcoin ATM adoption, Bitcoin Depot’s CEO remains optimistic about the industry’s rebound after the halving event.
Buying Bitcoin from liquidity providers instead of mining is a clever way for Bitcoin Depot to secure their supply.
CoinFlip and BitStop must be feeling the heat with Bitcoin Depot’s lead in the number of ATMs operated! 🔥🏧
I’m amazed at how Bitcoin Depot focuses on non-speculative purposes, such as money transfers and online purchases! 💸💻