Bitcoin (BTC) May Have Surged Above the $100000 Mark Last Year, but Not All Bitcoin-Centric Businesses Benefited from the Price Action

Bitcoin Depot (BTM) may have surged above the $100000 mark last year, but not all bitcoin-centric businesses benefitted from the price action.

Bitcoin (BTC) may have soared above the $100,000 mark last year, but not all bitcoin-centric businesses benefitted from the price action.

Bitcoin Depot (BTM) (NYSE:BTM) saw a loss in revenue from $150 million in the fourth quarter of 2022 to $137 million in the fourth quarter of 2024. The lower transaction volume was mainly due to changes in regulations in the state of California, the company said.

Moreover, bitcoin's price action has historically not impacted Bitcoin Depot's cash flow, said Brandon Mintz, president and CEO of the firm.

"Even when we saw that crash in 2022, transaction volumes were still growing," Mintz said.

Bitcoin Depot's stock has decreased by roughly 85% since it began trading on the Nasdaq after its merger with a special purpose acquisition company (SPAC) in 2023. The company's market capitalization is $82 million.

The company also discussed the possibility of spot bitcoin exchange-traded funds, which launched in the U.S. in January 2024, siphoning some of the firm's flows.

"Historically, our business is not directly tied to bitcoin price or investment vehicles like ETFs," a spokesperson said in an emailed statement. "We haven’t seen evidence that ETFs have impacted our transaction volumes."

Bitcoin Depot serves unbanked Americans, as well as people who prefer to transact in cash, such as older adults who aren't familiar with online payment options, and crypto users who find giving cash for bitcoin more convenient, said Mintz.

"It’s a niche customer segment that we're focused on," he said.

Bitcoin Depot purchases the ATM kiosk from another company, but provides the machine's Bitcoin software. The price for a new machine ranges from $5,000 to $7,000, and it takes about a year for the company to recover the cost of a machine once it's installed.

The ATMs only sell bitcoin.

"We used to offer other cryptocurrencies, but when we went public the SEC was suing a lot of companies for selling other types of cryptos that the SEC claimed were potentially securities, so we decided to go Bitcoin only and avoid that risk," Mintz said. "We believe it was a smart choice, because we're attracting people that aren't very sophisticated traders — this is a very beginner-friendly product."

Bitcoin Depot has seen nearly $3 billion in transaction volume since its inception in 2016, the company's recent investor presentation shows. While the company is mostly focused on North America, Mintz said they may expand internationally.

CORRECTION: (March 24, 2025, 20:35 UTC): Fixed BTM's market capitalization.

CORRECTION: (March 24, 2025, 23:56 UTC): While Bitcoin Depot is looking into expanding internationally, it is not doing so because of market saturation.