Bitcoin Depot, the largest Bitcoin (BTC) ATM operator in the United States, has revealed that its revenues have no correlation with the price of Bitcoin. In its 10-K annual report filed on April 15, the company stated that its revenues in 2023 and 2022, which amounted to $689 million and $647 million, respectively, were not affected by the volatile Bitcoin prices.
Despite Bitcoin surging 155% in 2023, Bitcoin Depot only experienced a 6% year-over-year revenue growth. The company attributes this lack of correlation to the nature of its services, as its user surveys indicate that the majority of its users utilize its products and services for non-speculative purposes such as money transfers, international remittances, and online purchases.
To mitigate its exposure to BTC price volatility, Bitcoin Depot maintains a relatively low balance of Bitcoin, always less than $0.8 million, at any given time. The company also highlighted two main components of its working capital: Bitcoin in hot wallets to fulfill user orders and cash accumulated in the Bitcoin ATM kiosks. As of December 31, 2023, cash in the BTM kiosks accounted for approximately 21% of Bitcoin Depot’s average monthly revenues.
Bitcoin Depot, founded in 2016, operates a significant global network of Bitcoin ATMs, also known as BTMs. These ATMs allow users to deposit and withdraw money using cash or a debit card. According to data from CoinATMRadar, Bitcoin Depot is the largest cryptocurrency ATM operator worldwide, with over 7,000 BTMs as of April 2024. Its main competitors, CoinFlip and BitStop, operate 4,800 and 2,500 machines, respectively.
In 2023, global Bitcoin ATM adoption experienced its first-ever decline in terms of the number of machines installed. However, Bitcoin Depot CEO Brandon Mintz believes that the industry will rebound significantly following the anticipated Bitcoin halving event, which is expected to occur this week.