Bitcoin ATM Growth Lags Even as Crypto Prices Surge

Bitcoin Depot’s Transaction Volume Nears $3 Billion Despite Revenue Decline

Bitcoin Depot, a leading provider of Bitcoin ATMs, has processed approximately $3 billion in transactions since its launch in 2016. However, despite Bitcoin’s (BTC) surge past $100,000 last year, the company has faced financial headwinds.

The firm reported a decline in revenue, falling from $150 million in Q4 2022 to $137 million in Q4 2024. According to Bitcoin Depot, regulatory changes in California significantly impacted transaction volumes. Additionally, CEO Brandon Mintz emphasized that the company’s cash flow has historically shown little correlation to Bitcoin’s price movements.

“Even during the market downturn in 2022, our transaction volumes continued to grow,” Mintz stated.

Bitcoin Depot’s stock has suffered since going public via a special purpose acquisition company (SPAC) in 2023. The company’s share price has dropped approximately 85%, leaving its market capitalization at $82 million.

The firm dismissed concerns that the rise of spot Bitcoin exchange-traded funds (ETFs), which debuted in the U.S. in January 2024, may have negatively impacted its business. “Our business model has never been directly tied to Bitcoin’s price or investment vehicles like ETFs,” a company spokesperson said. “We have not observed any evidence that ETFs have affected our transaction volumes.”

Bitcoin Depot primarily caters to unbanked individuals, those who prefer cash transactions, elderly customers unfamiliar with digital payment methods, and cryptocurrency users who find cash-for-Bitcoin transactions more convenient. “Our focus is on a niche customer segment,” Mintz explained.

The company sources its ATMs from third-party manufacturers but integrates proprietary Bitcoin transaction software. The cost of a new Bitcoin ATM typically ranges from $5,000 to $7,000, and Bitcoin Depot expects to recoup its investment within a year after installation.

The ATMs exclusively support Bitcoin purchases. “We previously offered other cryptocurrencies, but when we went public, the SEC was actively pursuing legal action against firms selling tokens it considered securities,” Mintz noted. “We opted to remain Bitcoin-only to mitigate regulatory risk. This decision has also helped us attract users who are less experienced traders, as our machines offer a beginner-friendly experience.”

With nearly $3 billion in transaction volume recorded since its inception, Bitcoin Depot has established a solid presence in North America. Looking ahead, Mintz suggested that the company may explore opportunities to expand internationally.