Largest Crypto ATM Operator Eyes Acquisitions, Global Expansion

The largest crypto-ATM operator, which revealed its intention to go public last week, sees opportunities to acquire smaller players in the space and expand internationally after its planned listing on the Nasdaq.

Bitcoin Depot CEO Brandon Mintz told Blockworks that he expects the public listing — via a pending combination with private equity firm GSR II Meteora Acquisition Corp. – may happen in the first quarter of next year.

Founded in 2016, the Atlanta-based company offers a way to convert cash to bitcoin, ether and litecoin via its roughly 7,000 ATMs in the US and Canada.

Bitcoin Depot’s transaction volumes have not historically been correlated to the price of crypto or seen significant effects based on bull or bear market cycles, the executive added. That eclipsed an all-time high of $160 million in transaction volumes during the second quarter of 2022, the company’s data shows, despite the price of bitcoin plunging to around $20,000.

The company has generated $623 million in revenue and $6 million in net income over the past 12 months, as of June 30.

“Although [bitcoin] Price drops 10% tomorrow, we don’t expect to see much change,” Mintz said.

“We’re growing very consistently over time, so we think with that growth and ability to raise our profile, attract talent and acquire companies, it’s the perfect time to go public,” he added.

The crypto ATM landscape

There are 38,667 crypto ATMs in the world, according to Coin ATM Radar. Bitcoin Depot is the largest crypto ATM operator – accounting for roughly 18% of all crypto ATMs – followed by CoinCloud and CoinFlip, which have around 5,000 and 4,000 ATMs respectively.

The top 10 operators operate around 70% of the world’s crypto ATMs, although there are 257 operators in the US and 59 in Canada, Coin ATM Radar data shows. The company plans to buy some of the smaller players in North America, Mintz said.

“We think many of them will be interested in taking advantage of our economies of scale, our retail relationships, our hardware relationships and our strong management team to take them to the next level with us,” the CEO said.

The company launched BDCheckout in June, allowing customers to load money into their Bitcoin Depot digital wallet at more than 8,000 retail locations, where they can then buy bitcoin. The news followed last year’s collaboration with petrol station and convenience store chain Circle K.

Growth opportunities

After the US and Canada, which have 34,223 and 2,573 crypto ATMs respectively, Spain’s 255 machines is the third highest.

The dropout represents a big opportunity to expand Bitcoin Depot’s footprint into other countries, Mintz said. The company is doing market research and has not yet committed to any specific regions.

In North America, Bitcoin Depot currently operates ATMs in 47 states and nine Canadian provinces. It is working with New York’s Department of Financial Services to obtain a BitLicense – the requirement for it to operate in the state.

Mintz said he hopes to receive the New York license in the next few months to expand into a state ripe for growth. New York has about 200 crypto ATMs, while Florida, which has a similar population, has more than 3,000.

Mintz said the recent bankruptcies of Voyager Digital and Celsius could spur investors to trade crypto through Bitcoin Depot. He also pointed to Coinbase disclosing in a regulatory filing in May that if the company ever declared bankruptcy, customers could be treated as “general unsecured creditors.”

“I think there’s more and more focus on the phrase, ‘not your keys, not your coins,'” Mintz said. “So people are going to look more and more for unhosted, non-custodial wallets where they’re not exposed to any risk from a third party.”

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