Bitcoin Depot Converts BTC ATMs to Software to Reduce Operating Costs
Crypto ATM installations have seen a steady decline worldwide in recent months. While some ATMs have been decommissioned due to geopolitical tensions and revenue declines, some vendors such as Bitcoin Depot have begun converting their physical Bitcoin (BTC) ATMs to software.
Bitcoin Depot recently converted all of its 7,000 crypto ATMs and kiosks to a software-based offering powered by BitAccess. The software conversion came after Bitcoin Depot bought a majority stake in BitAccess back in November 2022. Months before the deal, Bitcoin Depot had revealed plans to go public in 2023 via an $885 million deal with a special purpose acquisition company (SPAC).
The software conversion of the crypto-ATMs, which vertically integrates Bitcoin Depot’s hardware and software, eliminates annual software license fees. The fees previously amounted to $3 million in annual operating costs.
In the first half of 2022, BitAcess enjoyed the position of market leader. However, since July 2022, the company has seen a consistent decline in total ATM installations, Coin ATM Radar data confirms.
As shown in the graph above, BitAccess is currently down in third place behind Genesis Bytes and Genesis Coin, both of which have increased their market share over the same timeline. Explaining the motive behind the move, Bitcoin Depot’s VP of BTM Operations, Jason Sacco, stated:
“By replacing the existing hard drive with one preloaded with Bitaccess software, we quickly completed the software conversion while avoiding certain technical issues that can occur in field conversion projects.”
The Sacco also revealed that the first 6,000 of Bitcoin Depot’s Bitcoin ATMs were software converted in 10 weeks. The increase in crypto ATMs is directly proportional to the amount of crypto exposure to the general public.
When El Salvador chose Bitcoin as legal tender, President Nayib Bukele announced that the country will build a supporting infrastructure with 200 ATMs and 50 branches.
Related: Australia overtakes El Salvador to become the fourth largest crypto ATM center
The UK’s financial regulator, the Financial Conduct Authority (FCA), recently announced that all crypto ATMs operating in the UK are unregistered and illegal.
At the time, the FCA’s executive director of enforcement Mark Steward shared the intention to disrupt unregistered crypto businesses in the country.
