Bitcoin Depot Reports Unaffected Revenue Amid Cryptocurrency Volatility

Bitcoin Depot Reports Unaffected Revenue Amid Cryptocurrency Volatility

Crypto News – Despite the notorious volatility of cryptocurrency markets, Bitcoin Depot, a major Bitcoin ATM operator, claims its revenues remain unaffected, thanks to a deliberate strategy of maintaining a minimal Bitcoin balance.

In its recent 10-K annual report filed on April 15, Bitcoin Depot, the largest ATM operator in the United States, asserted that its revenues have historically shown no correlation with Bitcoin’s price fluctuations. Even amidst Bitcoin’s wild price swings, the company’s revenues for 2023 and 2022 stood at $689 million and $647 million, respectively, demonstrating minimal impact from Bitcoin’s volatility.

While Bitcoin experienced a staggering 155% surge in 2023, Bitcoin Depot’s year-over-year revenue growth was a modest 6%, according to the company’s statements.

Bitcoin Depot attributes this lack of correlation between its revenues and Bitcoin’s price to the nature of the services it offers. The company’s own user surveys indicate that a majority of its customers utilize its products and services for non-speculative purposes such as money transfers, international remittances, and online purchases.

To mitigate exposure to Bitcoin price volatility, Bitcoin Depot maintains a conservative approach, keeping its Bitcoin balance relatively low, usually less than $0.8 million at any given time. The company primarily acquires Bitcoin through liquidity providers like Cumberland DRW or Abra, refraining from engaging in Bitcoin mining activities.

Bitcoin Depot delineates two primary components of its working capital: Bitcoin held in hot wallets to fulfill user orders and cash accumulated in Bitcoin ATM kiosks. As of December 31, 2023, cash in the BTM kiosks represented approximately 21% of Bitcoin Depot’s average monthly revenues.

Established in 2016, Bitcoin Depot operates a substantial network of Bitcoin ATMs globally, facilitating cash deposits and withdrawals using cash or debit cards.

According to data from CoinATMRadar, Bitcoin Depot leads the global cryptocurrency ATM market, boasting over 7,000 BTMs as of April 2024, surpassing competitors like CoinFlip and BitStop, with 4,800 and 2,500 machines, respectively.

Despite a decline in global Bitcoin ATM adoption in 2023, Bitcoin Depot’s CEO Brandon Mintz anticipates a significant rebound in the industry following the much-anticipated Bitcoin halving event expected to occur this week.