Bitcoin Depot Completes Purchase of Roughly 400 Additional Bitcoin ATMs for Q1 2024 Expansion
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Insights
The strategic expansion of Bitcoin Depot's BTM network is a significant development within the fintech and cryptocurrency sectors. By targeting a fleet of approximately 8,000 BTMs by the end of 2024, the company is not only looking to saturate the market but also to fill the void left by the exit of other major BTM operators. This aggressive growth strategy could potentially increase Bitcoin Depot's market share and solidify its position as an industry leader.
From a market perspective, the expansion of BTMs may indicate a bullish outlook for the accessibility and adoption of cryptocurrencies, particularly in regions where digital transactions are on the rise. However, the cryptocurrency market is notoriously volatile and the company's growth must be weighed against the backdrop of regulatory challenges and market sentiment shifts.
The previous dominance of Bitcoin Depot in the North American market and its status as the first publicly traded BTM operator could attract investor interest, leveraging its market position to potentially drive stock value. The expansion is likely to be closely monitored by investors as an indicator of the company's operational efficiency and its ability to capitalize on current market opportunities.
Bitcoin Depot's announcement of expanding its BTM network could be a double-edged sword financially. On one hand, the acquisition and deployment of additional kiosks represent a significant capital expenditure, which could impact the company's short-term cash flow. On the other hand, if the expansion leads to increased transaction volumes and user adoption, it could result in a steady stream of revenue over the long term.
Investors will likely scrutinize the company's financials to assess the return on investment of the BTM deployment. It is crucial to evaluate the cost per kiosk against the expected revenue each unit will generate. Furthermore, given the competitive landscape, Bitcoin Depot's ability to maintain operational efficiency and cost-effectiveness while scaling up will be crucial for its profitability.
The company's historical performance, including its recognition in Deloitte’s 2023 Technology Fast 500 and the 2023 Inc. 5000, suggests a track record of growth, which may bolster investor confidence. However, it is essential to remain cautious, as past performance is not always indicative of future results, especially in the rapidly evolving cryptocurrency market.
Bitcoin Depot's expansion plans are indicative of a broader trend in the cryptocurrency industry towards increased physical infrastructure to support digital assets. The deployment of BTMs serves as a tangible bridge between traditional cash economies and the digital cryptocurrency ecosystem, potentially enhancing public adoption and trust in cryptocurrencies.
However, the success of this strategy hinges on several factors, including regulatory developments, competition from virtual exchanges and the overall health of the cryptocurrency market. The decline in BTM numbers from their peak in August 2022 suggests market consolidation, which could benefit larger operators like Bitcoin Depot but also points to potential market saturation risks.
The company's forward-looking statements about aggressive expansion and market share gains must be evaluated against the backdrop of the highly dynamic and speculative nature of the cryptocurrency market. While the expansion could signal confidence in the long-term viability of cryptocurrencies, it is also subject to the unpredictable swings in consumer sentiment and regulatory scrutiny that characterize this industry.
Bitcoin Depot targets to have roughly 8,000 Bitcoin ATMs installed by the end of 2024
ATLANTA, Feb. 13, 2024 (GLOBE NEWSWIRE) -- Bitcoin Depot (“Bitcoin Depot” or the “Company”) (NASDAQ: BTM), a U.S.-based Bitcoin ATM (“BTM”) operator and leading fintech company, today announced the completion of a purchase of roughly 400 additional Bitcoin ATM kiosks, which the Company plans to deploy by the end of Q1 2024. To date, in 2024, Bitcoin Depot has committed to a total purchase of 900 kiosks between this purchase of 400 kiosks, and the previously announced 500 kiosk order. Bitcoin Depot intends to have the largest installed fleet of Bitcoin ATMs in its history, with roughly 8,000 kiosks installed by the end of 2024.
“We plan to expand aggressively in kiosk count in 2024 to attempt gain significant market share,” said Bitcoin Depot CEO Brandon Mintz. “According to coinatmradar.com, the number of BTMs in the Bitcoin ATM industry in the U.S. is still significantly lower than what it was at its peak in August 2022 at 34,626 because as of February 1st, 2024, the number of BTMs in the U.S. stood at 29,401 BTMs. Much of this
Bitcoin Depot’s products and services provide an intuitive, quick, and convenient process for converting cash into Bitcoin, giving users the ability to access the broader digital financial system, including using their Bitcoin for purposes of making payments, transfers, remittances, online purchases, and investments.
This news comes as the latest show of momentum for the Company following a string of recent expansion announcements and operational developments. In early 2022, Bitcoin Depot took over the #1 market share position to become the largest BTM operator in North America, and in 2023 – despite the turbulent cryptocurrency market the past couple of years – the Company became the first BTM operator to go public on a major U.S. stock exchange. Bitcoin Depot and its leadership have since been recognized and celebrated for the Company’s industry-leading growth in Forbes 30 Under 30, Deloitte’s 2023 Technology Fast 500, and, most recently, the 2023 Inc. 5000.
About Bitcoin Depot
Bitcoin Depot Inc. (Nasdaq: BTM) was founded in 2016 with the mission to connect those who prefer to use cash to the broader, digital financial system. Bitcoin Depot provides its users with simple, efficient and intuitive means of converting cash into Bitcoin, which users can deploy in the payments, spending and investing space. Users can convert cash to bitcoin at Bitcoin Depot kiosks in 48 states and at thousands of name-brand retail locations in 29 states through its BDCheckout product. The Company has the largest market share in North America with approximately 6,400 kiosk locations as of September 30, 2023. Learn more at www.bitcoindepot.com
Cautionary Note Regarding Forward-Looking Statements
This press release and any oral statements made in connection herewith include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. Forward-looking statements are any statements other than statements of historical fact, and include, but are not limited to, statements regarding the expectations of plans, business strategies, objectives and growth and anticipated financial and operational performance, including our growth strategy and ability to increase deployment of our products and services, the anticipated effects of the Amendment, and the closing of the Preferred Sale. These forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements are often identified by words such as "anticipate," "appears," "approximately," "believe," "continue," "could," "designed," "effect," "estimate," "evaluate," "expect," "forecast," "goal," "initiative," "intend," "may," "objective," "outlook," "plan," "potential," "priorities," "project," "pursue," "seek," "should," "target," "when," "will," "would," or the negative of any of those words or similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. In making these statements, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any future events or financial results. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond our control. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political and legal conditions; failure to realize the anticipated benefits of the business combination; future global, regional or local economic and market conditions; the development, effects and enforcement of laws and regulations; our ability to manage future growth; our ability to develop new products and services, bring them to market in a timely manner and make enhancements to our platform; the effects of competition on our future business; our ability to issue equity or equity-linked securities; the outcome of any potential litigation, government and regulatory proceedings, investigations and inquiries; and those factors described or referenced in filings with the Securities and Exchange Commission. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that we do not presently know or that we currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect our expectations, plans or forecasts of future events and views as of the date of this press release. We anticipate that subsequent events and developments will cause our assessments to change. We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events, or other factors that affect the subject of these statements, except where we are expressly required to do so by law. All written and oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.
Contacts:
Investors
Cody Slach, Alex Kovtun
Gateway Group, Inc.
949-574-3860
BTM@gateway-grp.com
Media
Christina Lockwood, Brenlyn Motlagh, Ryan Deloney
Gateway Group, Inc.
949-574-3860
BTM@gateway-grp.com
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