Bitcoin Depot, the largest Bitcoin ATM operator in the United States, has revealed that its revenues have not been affected by the volatile prices of Bitcoin. In its 10-K annual report, the company stated that its revenues in 2023 and 2022, amounting to $689 million and $647 million respectively, were not correlated to the price of Bitcoin, despite the significant fluctuations in its value.
Despite Bitcoin’s price surging by 155% in 2023, Bitcoin Depot’s year-over-year revenue growth was only 6%, indicating that the company’s revenues are not dependent on the price of Bitcoin.
According to Bitcoin Depot, this lack of correlation can be attributed to the nature of the services it provides. The company’s user surveys have revealed that the majority of its customers use its products and services for non-speculative purposes such as money transfers, international remittances, and online purchases.
To mitigate its exposure to volatility in BTC prices, Bitcoin Depot maintains a relatively low balance of Bitcoin, amounting to 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 that accumulates 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 vast network of Bitcoin ATM machines globally, with over 7,000 BTMs as of April 2024, making it the largest cryptocurrency ATM operator worldwide. Its main competitors, CoinFlip and BitStop, operate 4,800 and 2,500 machines respectively.
Despite a 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 highly anticipated Bitcoin halving event, expected to take place soon.
Overall, Bitcoin Depot’s ability to maintain steady revenues despite the volatility of cryptocurrency prices showcases the resilience and diverse applications of the industry beyond speculative trading.