Crypto ATM Bitcoin Depot Goes Public With $885M SPAC Deal
Major U.S. cryptocurrency ATM provider Bitcoin Depot said today it plans to go public via a merger with private equity firm GSR II Meteora Acquisition Corp.
The two companies reached a definitive agreement to merge in a deal valued at $885 million, an announcement revealed today. Upon completion of the merger, expected by the first quarter of 2023, the combined company will be called Bitcoin Depot Inc. and will trade under the symbol “BTM” on the Nasdaq.
Launched in 2016, Bitcoin Depot operates as a crypto-financial technology company in the United States that provides quick and easy access to cryptocurrencies. It supports a network of more than 7,000 kiosks in 47 US states and nine Canadian provinces where users can convert money to bitcoin, Ethereum or Litecoin.
Bitcoin ATMs do not work like regular automated teller machines, as they do not take bank cards and dispense cash. Instead, they are standalone touchscreens that allow customers to use their phones to exchange bank funds for cryptocurrencies using QR codes.
“Today marks an important milestone for Bitcoin Depot,” said Brandon Mintz, CEO and founder of Bitcoin Depot. “We are always looking to expand our reach so that as many people as possible can access cryptocurrency to control their own money and make easier and simpler financial transactions.”
According to the details of the deal, the combined company’s post-enterprise value will be $755 million aggregated to an estimated $855 million from a contribution of up to $170 million from the cash proceeds of the deal.
The GSR II Meterora SPAC reportedly has about $320 million in a trust account that will be used to support Bitcoin Depot’s working capital, complete acquisitions, and scale the platform. However, it is possible for SPAC investors to pull their money out before the merger, which could leave the resulting company with less money after the deal.
This deal coincides with cryptocurrency markets dubbed “crypto winter” where prices have lost more than 70% of their value since all-time highs in November. Despite this, the company says its revenue and network have continued to grow and its physical presence in stores has been a robust payment processing capability.
To its credit, Bitcoin Depot has pulled in $623 million in revenue over the past 12 months. Furthermore, the company said that transaction volumes are not “historically correlated to changes in cryptocurrency prices” and have reached approximately $1.2 billion since its launch in 2016.
Gus Garcia, co-CEO and director of GSR said he is confident in Bitcoin Depot’s ability to weather the bear market and grow its business after the merger.
“With its significant BTM footprint, key strategic relationships and feature-rich mobile app, we believe Bitcoin Depot is well positioned to take advantage of the highly fragmented BTM market both domestically and internationally,” said Garcia.
