Bitcoin Depot, a Crypto ATM Operator, Makes Nasdaq Debut After SPAC Merger
SEC imposes $4M fine on Coinme and its CEO for UpToken offering violations
Bitcoin Depot, the largest operator of cryptocurrency ATMs globally, witnessed a remarkable surge in its shares on Monday upon its Nasdaq debut. This surge came as a result of the company's merger with the special purpose acquisition company (SPAC) GSR II Meteora (GSRM), which had a valuation of $885 million in August. Following the merger, Bitcoin Depot's shares more than doubled in value.
Bitcoin Depot, a company headquartered in Atlanta, Georgia, and operating under the ticker symbol "BTM," has achieved a significant milestone by becoming the first crypto ATM operator to be listed on a major U.S. stock market.
BTM shares surged to a peak of $6.60 in pre-market trading, surpassing GSRM's closing price from Friday by more than double. However, they later retraced to $3.39, still reflecting a 5% increase from Friday's level.
Crypto ATMs provide users with the convenience of purchasing cryptocurrencies using cash or debit cards and transferring the tokens directly to a designated wallet without the need for a cryptocurrency exchange. However, these ATMs have unfortunately been exploited by fraudulent individuals. These scammers employ tactics such as listing items for sale on platforms like eBay or Craigslist, instructing buyers to make payments by depositing physical currency into an ATM.
Bitcoin Depot commands a dominant presence in the ATM market, with over 6,000 machines under its belt. This remarkable figure accounts for a substantial 20% share of ATMs in the United States and an impressive 17.6% share worldwide, according to the latest data from Coin ATM Radar.
Brandon Mintz, the CEO of Bitcoin Depot, recognizes that the crypto ATM market is "highly fragmented", presenting a significant opportunity for consolidation. With this understanding, Bitcoin Depot has set its sights on capitalizing on this potential by strategically targeting the sector.
"There's a few dozen operators with over 100 bitcoin ATMs in the U.S. alone and there has not been a lot of M&A activity in this space compared to other parts of the crypto and blockchain industry," Mintz told CoinDesk in an interview. "Rolling up this highly fragmented market is a really exciting opportunity for us."
Bitcoin Depot, after successfully installing ATMs at more than 2,000 Circle K convenience stores within the past two years, intends to expand its reach by securing installation agreements with renowned retailers and a few smaller regional chains, stated Mintz.
