North America’s largest Bitcoin operator Bitcoin Depot revealed plans to complete its SPAC deal amid a bearish crypto market.
Bitcoin Depot plans to go ahead with its SPAC merger after the company saw a 25.25% revenue increase between January and September this year. According to a new filing with the Securities and Exchange Commission (SEC) on December 1st stated that Bitcoin Depot “remains on track to complete its previously announced business combination with GSR II Meteora Acquisition Corp.”
Furthermore, Bitcoin Depot said its special acquisition purpose company (SPAC) merger will take place within the first quarter of next year. However, this development customarily remains subject to the company’s shareholders and regulatory approval. According to Bitcoin Depot, the deal would imbue the Atlanta-based Bitcoin ATM operator with $170 million in cash proceeds net of debt repayment.
In the first nine months of 2022, Bitcoin Depot’s revenue grew by 25.25% year-over-year to $497.2 million. However, this year-to-date development also reveals that the BTC ATM operator barely broke even with a net income of $4.622 million. Bitcoin Depot raked in $9.587 million in net income between January and September of 2021. The relative underperformance in 2022 is partly attributable to a sharp increase in interest expense. Assessing Bitcoin Depot’s latest performance against the backdrop of the ongoing crypto market turmoil, the company’s founder and CEO Brandon Mintz said:
“We believe we stand apart from the industry with limited direct crypto exposure, robust compliance procedures and secure transactions that give users control of their purchased crypto, compared to other methods of transacting in crypto where users rely on third parties to custody their crypto.”
Recap of Bitcoin Depot SPAC Deal
Bitcoin Depot first announced its SPAC merger with GSR II Meteora Acquisition Corp to take the company public on August 24th. The SPAC deal reportedly cost $885 million and would see Bitcoin Depot trade on the Nasdaq exchange under the BTM ticker.
Bitcoin Depot has performed reasonably well and noted that it continues to grow despite the prolonged bearish crypto market phase. According to Mintz, the Bitcoin ATM company realized record sales and earnings in the second quarter. Mintz ascribed this fortune to an increase in the use of crypto to purchase physical items and cross-border payments.
Bitcoin Depot exceeded 6,000 crypto ATMs across the US and Canada in December last year, the month after Bitcoin attained its all-time high figure. The company leveraged its partnership with American convenience store chain Circle K to achieve this feat.
In June this year, Bitcoin Depot launched its BDCheckout service, enabling customers to buy BTC directly into their specialized wallet using cash. According to the company at the time, BDCheckout will initially operate in 22 states across North America, including Puerto Rico. In addition, Bitcoin Depot also stated that customers could access the service across 8000 kiosks using its app.
Founded in 2016, Bitcoin Depot is North America’s most prominent Bitcoin ATM operator. The company has more than 7,000 kiosks and a 19% market share in the US alone, with many more in Canada.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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