Crypto ATM firm says revenue unaffected by fluctuations in BTC price

Bitcoin Depot says its revenues are independent of Bitcoin’s volatility as the firm maintains a “relatively low balance” of BTC.

The high volatility of cryptocurrency prices has had little to no effect on some major players in the industry, including Bitcoin Depot, a Bitcoin (BTC) ATM operator.

Bitcoin Depot, the biggest ATM operator in the United States, has recorded no correlation between its revenues and the price of Bitcoin historically, the firm stated in its 10-K annual report filed on April 15.

The company’s revenues in 2023 and 2022, or $689 million and $647 million, respectively, have not been correlated to the price of Bitcoin, even in the light of volatile Bitcoin prices.

While Bitcoin surged 155% in 2023, Bitcoin Depot’s year-over-year revenue growth amounted to just 6%, the company stated.

According to the ATM operator, the lack of correlation between Bitcoin Depot’s revenues and the BTC price comes partly from the nature of the services provided.

“Based on our own user surveys, a majority of our users use our products and services for non-speculative purposes, including money transfers, international remittances, and online purchases, among others,” Bitcoin Depot wrote.

Bitcoin Depot has also been putting efforts to reduce its exposure to volatility in BTC prices by maintaining a “relatively low balance” of Bitcoin — or less than $0.8 million — at any given time, the filing reads, adding:

“Our typical practice is to purchase Bitcoin through a liquidity provider such as Cumberland DRW or Abra. We replenish our Bitcoin only through purchases from leading Bitcoin liquidity providers and do not engage in any mining of Bitcoin ourselves.”

Bitcoin Depot pointed out two main components of the working capital required in its operations: Bitcoin on hot wallets to fulfill user orders and cash that accumulates in the Bitcoin ATM kiosks. As of Dec. 31, 2023, cash in the BTM kiosks accounted for roughly 21% of Bitcoin Depot’s average monthly revenues.

Founded in 2016, Bitcoin Depot operates a major network of Bitcoin ATM machines globally. Also referred to as BTMs, Bitcoin ATMs allow users to deposit and withdraw money using cash or a debit card.

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According to data from CoinATMRadar, Bitcoin Depot is the largest cryptocurrency ATM operator worldwide, operating more than 7,000 BTMs as of April 2024. Its biggest rivals, CoinFlip and BitStop, operate 4,800 and 2,500 machines, respectively.

As previously mentioned, global Bitcoin ATM adoption experienced the first-ever decline in terms of the amount of machines installed in 2023.

According to Bitcoin Depot CEO Brandon Mintz, the ATM industry will likely see a significant rebound following the much anticipated Bitcoin halving event, expected to occur this week.