Bitcoin ATMs are expected to experience a surge in global installations following the Bitcoin halving, a period marked by heightened crypto FOMO, as indicated by the CEO of a prominent Bitcoin ATM operator.
In 2023, the installation of crypto ATMs witnessed a year-over-year decrease for the first time in ten years, likely due to a bear market exacerbated by the collapse of various crypto companies. Nonetheless, Brandon Mintz, the CEO of Bitcoin Depot, highlights a promising start to 2024, with 1,469 crypto ATMs installed in the first three months compared to the removal of over 3,000 around the same time in 2023, according to data from CoinATMRadar.
Mintz expresses optimism about the industry’s continuous growth in kiosk numbers, with over 400 ATMs installed in the month of March alone. He predicts a resurgence in the ATM sector as Bitcoin regains momentum, having hit its all-time high twice in March.
During previous bull markets, Mintz observed a surge in crypto adoption during the FOMO phase, accompanied by an influx of customers. However, he believes it is still early in the cycle, with the upcoming halving event in late April expected to further boost Bitcoin’s price.
Despite the recent increase in ATM installations, Mintz notes a decline in the number of ATM operators over the past 18 months, pointing to the bankruptcy of major players like Coin Cloud. He attributes this to the collapse of the crypto market following the demise of exchanges like FTX.
Bitcoin Depot’s financial results for Q4 and full-year 2023 revealed a 7% increase in revenues to $689 million, although net income dropped by 54% to $1.6 million. The company plans to install 900 ATMs in the first quarter of 2024 and aims to launch an additional 940 ATMs in convenience stores across 24 states in the US.
Despite the approval of spot Bitcoin ETFs in the US, Mintz remains confident in the continued demand for Bitcoin ATMs, emphasizing that the customer base for ATMs differs from that of ETF buyers. He believes that the increasing popularity of Bitcoin due to ETFs could lead to higher ATM usage as more individuals embrace Bitcoin.
In conclusion, Bitcoin ATMs are poised for a resurgence, driven by the upcoming halving event and the growing adoption of Bitcoin, paving the way for a more robust ecosystem for cryptocurrency transactions.