Bitcoin Depot, a prominent Bitcoin ATM operator, remains unfazed by the unpredictable nature of cryptocurrency prices. In their recent 10-K report, filed on April 15, Bitcoin Depot revealed that their sales do not correlate with the fluctuation of Bitcoin prices.
Contrary to expectations, the company’s revenue in 2023 was $689 million, surpassing the previous year’s $647 million. Bitcoin Depot attributes this success to the fact that their revenues are not dependent on Bitcoin prices, despite the market’s volatility.
The lack of correlation between revenues and Bitcoin prices can be attributed to the nature of the services provided by Bitcoin Depot. According to the company, their own user surveys indicate that the majority of customers utilize their products and services for non-speculative purposes such as money transfers, international remittances, and online purchases.
To mitigate their exposure to BTC price volatility, Bitcoin Depot has implemented strategies to maintain a relatively low balance of Bitcoin at any given time. Currently, they hold less than $0.8 million worth of Bitcoin. The company focuses on two key components of their working capital: Bitcoin in hot wallets to fulfill customer orders and cash flow from Bitcoin ATM kiosks. As of December 31, 2023, cash in BTM kiosks accounted for approximately 21% of Bitcoin Depot’s monthly revenues.
Bitcoin Depot, established in 2016, boasts the largest network of Bitcoin ATMs globally. These ATMs, also known as BTMs, enable users to deposit and withdraw cash or money using a debit card. According to data from CoinATMRadar as of April 2024, Bitcoin Depot operates over 7,000 BTMs, solidifying its position as the world’s largest cryptocurrency ATM operator. Its competitors, CoinFlip and BitStop, operate 4,800 and 2,500 machines, respectively.
Brandon Mintz, CEO of Bitcoin Depot, anticipates a significant resurgence in the ATM industry following the Bitcoin halving event scheduled for this week. The company remains optimistic about its future prospects and is committed to providing convenient cryptocurrency services to its growing user base.
[Image: Bitcoin Depot Logo]
Source:
CoinATMRadar
