Bitcoin Depot’s Revenue Decline

Bitcoin (BTC) surged above $100,000 last year, but not all bitcoin businesses benefited. Bitcoin Depot, a firm specializing in bitcoin ATMs, reported a revenue drop from $150 million in Q4 2022 to $137 million in Q4 2024.

The revenue decline was attributed to decreased transaction volumes, largely due to regulatory changes in California. Despite this, Bitcoin Depot’s cash flow has been historically uncorrelated with bitcoin’s price movements, as noted by the firm’s president and CEO, Brandon Mintz. He pointed out that even during the 2022 crash, transaction volumes continued to grow.

Since its Nasdaq debut after a SPAC merger in 2023, Bitcoin Depot’s stock price has plummeted about 85%, bringing its market cap down to $30 million. The firm discounted the idea that newly launched spot bitcoin ETFs have affected their business, stating that their operations are not directly influenced by bitcoin prices or investment vehicles.

Targeting unbanked Americans and those preferring cash transactions, Bitcoin Depot offers a niche service to customers, including the elderly and cryptocurrency enthusiasts. The company buys ATM kiosks from others but supplies its own Bitcoin software. New machines cost between $5,000 and $7,000, and typically take a year to break even post-installation.

Initially, Bitcoin Depot offered multiple cryptocurrencies but switched to focusing solely on bitcoin due to regulatory risks regarding other digital assets. Mintz emphasized that this strategy aims to attract beginner-friendly customers.

Since 2016, Bitcoin Depot has processed nearly $3 billion in transaction volume and is considering international expansion as North American markets become saturated.