- Bitcoin Depot, a major cryptocurrency ATM firm in the United States, has closed a merger deal to go public.
- The merger with fintech firm GSR II Meteora Acquisition Corporation cost $885 million and will allow investors to access Bitcoin Depot on the Nasdaq starting July 3.
- The merger aims to support growth opportunities and promote Bitcoin adoption in North America amid increasing regulatory scrutiny of crypto-related firms.
The company, one of the largest Bitcoin ATM operators in the country, announced its merger with blank check company GSR II Meteora last week—the merger is for the firm to act as a special purpose acquisition company for Bitcoin Depot.
According to Nasdaq data, Bitcoin Depot (BTM) was trading for $3.61 per share at the time of writing. As of Monday, the price was as high as $6.62, indicating a significant change.
According to Brandon Mintz, Founder and CEO of Bitcoin Depot, stated in the official announcement, “Bitcoin Depot is well positioned with the largest market share in North America, and the additional capital from this transaction will help support our numerous growth opportunities while advancing our mission to bring Bitcoin to the masses safely [and] securely.”
Bitcoin Depot, based in Atlanta, Georgia, claims to be the largest provider of Bitcoin ATMs in North America, with 6,440 kiosk locations.
A Bitcoin or cryptocurrency ATM is similar to a traditional ATM but allows users to buy and sell digital assets. Interested traders can use such ATMs to quickly buy and sell coins and tokens without having to open an account with an exchange.
Bitcoin ATMs can also come in handy when banks refuse to process cryptocurrency transactions.
Once wholly anonymous, the company is now regulated by the Financial Crimes Enforcement Network (FinCEN) in the U.S. after the United States Internal Revenue Service (IRS) raised the alarm on how they might be being used by money launderers.
To use the Bitcoin Depot kiosk, enter your phone number and download a digital wallet app.
Bitcoin Depot Owns 20% of the ATM Market
According to Coin ATM Radar, Bitcoin Depot operates approximately 6,000 of these machines, accounting for 20% of the ATM market in the United States and 17.6% of the global market. Other top providers of machines in North America besides Bitcoin Depot include Coin Cloud and CoinFlip, which have 11.8% and 11.2% of the market, respectively.
Because the cryptocurrency ATM market is “highly fragmented,” according to Bitcoin Depot CEO Brandon Mintz, there is plenty of room for consolidation. The company is now concentrating its efforts in this area.
According to Mintz, after installing crypto ATMs in over 2,000 Circle K convenience stores over the last two years, Bitcoin Depot is now looking for similar installation deals with other “household name retailers.”
Customers can use crypto ATMs to buy cryptocurrency with cash or debit cards and wire the tokens directly to a wallet without using a cryptocurrency exchange. However, scammers who advertise items on websites like eBay or Craigslist with instructions for buyers to pay with actual cash deposited at an ATM have also used them.