Bitcoin Depot, a leading Bitcoin ATM operator, has shown resilience in the face of cryptocurrency price volatility. In their recently filed 10-K report, Bitcoin Depot revealed that their sales do not correlate with Bitcoin prices, highlighting their ability to mitigate the impact of market fluctuations.
Despite the unpredictable nature of the cryptocurrency market, Bitcoin Depot reported a revenue of $689 million in 2023, surpassing the previous year’s figure of $647 million. This growth is particularly noteworthy because it was not driven by changes in Bitcoin prices.
Bitcoin Depot attributes this lack of correlation to the nature of their services. Through user surveys, they have found that the majority of their customers utilize their products for non-speculative purposes such as money transfers, international remittances, and online purchases.
To further reduce their exposure to Bitcoin price volatility, Bitcoin Depot maintains a relatively low balance of Bitcoin, typically less than $0.8 million, at any given time. They have strategically focused on two key components of their working capital: Bitcoin in hot wallets for customer orders and cash flowing in Bitcoin ATM kiosks. As of December 31, 2023, cash in BTM kiosks accounted for around 21% of Bitcoin Depot’s monthly revenues.
Bitcoin Depot has established itself as a dominant player in the ATM industry since its inception in 2016. With a global network of over 7,000 Bitcoin ATMs, they hold the title of the largest cryptocurrency ATM operator in the world, surpassing competitors such as CoinFlip and BitStop.
CEO Brandon Mintz expressed optimism about the future of the ATM industry, citing the upcoming Bitcoin halving event as a catalyst for growth. This event, set to occur in the near future, is expected to have a significant impact on the industry.
Overall, Bitcoin Depot’s ability to navigate the volatile cryptocurrency market and maintain steady revenue growth showcases their resilience and adaptability in the face of industry challenges.