Bitcoin Depot, the largest Bitcoin ATM operator in the United States, has revealed that its revenues are not affected by the volatility of Bitcoin prices. In its recent 10-K annual report, the company stated that its revenues in 2023 and 2022, totaling $689 million and $647 million respectively, were not correlated to the price of Bitcoin, despite its highly volatile nature.
Even though Bitcoin saw a significant increase of 155% in 2023, Bitcoin Depot only experienced a year-over-year revenue growth of 6%. The company attributes this lack of correlation to the fact that a majority of its users utilize its services for non-speculative purposes such as money transfers, international remittances, and online purchases.
Furthermore, Bitcoin Depot has taken measures to minimize its exposure to Bitcoin price volatility by maintaining a relatively low balance of Bitcoin, which is less than $0.8 million at any given time. The company explained that this is achieved by keeping Bitcoin in hot wallets to fulfill user orders and by accumulating cash in its Bitcoin ATM kiosks. As of December 31, 2023, the cash in the BTM kiosks accounted for approximately 21% of Bitcoin Depot’s average monthly revenues.
Established in 2016, Bitcoin Depot operates a vast network of Bitcoin ATMs globally, allowing users to deposit and withdraw money using cash or a debit card. CoinATMRadar data confirms that Bitcoin Depot is the largest cryptocurrency ATM operator in the world, with over 7,000 BTMs in operation as of April 2024. Its main competitors, CoinFlip and BitStop, operate 4,800 and 2,500 machines respectively.
Interestingly, despite the decline in the number of Bitcoin ATMs installed globally in 2023, Bitcoin Depot CEO Brandon Mintz believes that the industry will experience a significant rebound following the upcoming Bitcoin halving event. This event, which is eagerly anticipated by the industry, is expected to take place this week.
Overall, Bitcoin Depot’s ability to remain unaffected by the volatility of Bitcoin prices highlights the diverse and practical uses of cryptocurrencies beyond speculative investments.