Bitcoin Depot Strikes $885 Million Deal: Plans to Go Public
According to exclusive coverage by the Wall Street Journal (WSJ), crypto-ATM provider Bitcoin Depot has reached an $885 million SPAC (Special Purpose Acquisition Company) deal to go public.
The merger between SPAC GSR II Meteora Acquisition Corp. and Atlanta-based Bitcoin Depot to be announced on Thursday.
A SPAC, also known as a blank check company, is a shell business that seeks investment capital and trades on a stock exchange. The firm’s sole purpose is to merge with a private company and take it public. The SPAC is replaced in the stock market by the company being listed on the stock exchange after the agreement has been finalised.
Bitcoin Depot was founded in 2016 and has over 7,000 retail locations in the US and Canada. Bitcoin ATMs are not like fiat ATMs. They do not allow users to withdraw or deposit cash. Instead, they allow users to buy crypto by scanning a code and using cash. Such crypto ATMs make the new digital asset class more accessible. Also, crypto ATMs are becoming more and more popular every year. In 2019, there were around 6,000 such ATMs. Fast forward to 2022, that’s almost 40,000. Nevertheless growth stalled for a while.
How has the Bitcoin deposit fared in the bear market?
Regardless of the current bearish sentiment, Bitcoin Depot reports doing “fantastic.” The company has reported continued growth, despite the market behavior.
Bitcoin Depot CEO Brandon Mintz stated,
“We’re actually doing great right now regardless of the market.”
The firm reported record revenue and earnings before interest, taxes, depreciation and amortization in the second quarter of 2022. According to Mintz, the growth indicates their increasing use of cryptocurrencies for payments and to send money abroad.
Bitcoin Depot recently introduced a program that allows customers to use cash at more than 8,000 locations without physical kiosks to buy cryptocurrencies.
Bitcoin ATMs operating in the United States must cooperate with the Financial Crimes Enforcement Network and comply with the Bank Secrecy Anti-Money Laundering Act. According to Mintz, the company has a sophisticated compliance system that, depending on the nature of the transaction, may occasionally include requesting additional documents from customers.
Gus Garcia, the SPAC’s co-CEO, said he is confident in Bitcoin Depot’s financing options due to the company’s continued steady growth.
