Bitcoin Custody to Push Forward with SPAC Deal After Strong Revenue Growth
North America’s largest Bitcoin operator Bitcoin Depot revealed plans to complete its SPAC deal amid a bearish crypto market.
Bitcoin Depot plans to move forward with its SPAC merger after the company saw a 25.25% increase in revenue between January and September of this year. According to a new filing with the Securities and Exchange Commission (SEC) on December 1, Bitcoin Depot “remains on track to complete its previously announced business combination with GSR II Meteora Acquisition Corp.”
Furthermore, Bitcoin Depot said that their special acquisition purpose (SPAC) merger will take place during the first quarter of next year. However, this development is usually dependent on the company’s shareholders and regulatory approval. According to Bitcoin Depot, the deal will give the Atlanta-based Bitcoin ATM operator $170 million in cash after repaying debt.
In the first nine months of 2022, Bitcoin Depot’s revenue grew 25.25% year-over-year to $497.2 million. However, this year-to-date performance also reveals that the BTC ATM operator barely broke even with a net income of $4.622 million. Bitcoin Depot brought in $9.587 million in net income between January and September 2021. The relative underperformance in 2022 is partly due to a sharp increase in interest costs. Assessing Bitcoin Depot’s recent performance against the backdrop of the ongoing turmoil in the crypto market, company founder and CEO Brandon Mintz said:
“We believe we differentiate ourselves from the industry with limited direct crypto exposure, robust compliance procedures, and secure transactions that put users in control of their purchased crypto, compared to other methods of transacting in crypto where users rely on third parties to hold their crypto.”
Bitcoin Depot SPAC Agreement Summary
Bitcoin Depot first announced its SPAC merger with GSR II Meteora Acquisition Corp to take the company public on August 24. The SPAC deal reportedly cost $885 million and will see Bitcoin Depot trade on the Nasdaq exchange under the BTM ticker.
Bitcoin Depot has performed reasonably well, noting that it continues to grow despite the prolonged bearish crypto market phase. According to Mintz, the Bitcoin ATM company realized record sales and earnings in the second quarter. Mintz attributed this fortune to an increase in the use of crypto to purchase physical items and cross-border payments.
Bitcoin Depot surpassed 6,000 crypto ATMs across the US and Canada last December, the month after Bitcoin hit its all-time high. The company leveraged its partnership with American convenience store chain Circle K to achieve this feat.
In June of this year, Bitcoin Depot launched its BDCheckout service, which enables customers to buy BTC directly into its specialized cash wallet. According to the company at the time, BDCheckout will initially operate in 22 states across North America, including Puerto Rico. In addition, Bitcoin Depot also stated that customers could access the service across 8,000 kiosks using the app.
Founded in 2016, Bitcoin Depot is North America’s most prominent Bitcoin ATM operator. The company has more than 7,000 kiosks and a 19% market share in the US alone, with many more in Canada.
next
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the basics so anyone anywhere can understand without too much background knowledge. When he is not deep into crypto stories, Tolu likes music, loves to sing and is an avid movie buff.
