Some large companies in the cryptocurrency sector, such as Bitcoin Depot, which runs Bitcoin ATMs, have experienced minimal impact from the volatile price swings of cryptocurrencies like Bitcoin.
Bitcoin Depot, the largest Bitcoin ATM company in the US, mentioned in their annual report filed on April 15 that there hasn’t been a consistent connection between their earnings and the value of Bitcoin throughout history.
In 2022 and 2023, the company earned revenues of $647 million and $689 million, respectively. Despite significant fluctuations in the price of Bitcoin during these years, there has been no clear connection between the company’s earnings and Bitcoin’s price.
In the year 2023, Bitcoin experienced a remarkable increase of 155%, but Bitcoin Depot’s revenue expansion only reached 6% in comparison to the previous year. (Or) Bitcoin soared by 155% in 2023, however, Bitcoin Depot’s revenue growth was relatively modest at 6% for the same period.
The ATM operator for Bitcoin Depot explains that the inconsistency between their earnings and the value of Bitcoins isn’t solely due to the Bitcoin price fluctuations. Instead, it’s also attributed to the unique characteristics of the services they offer.
According to the feedback from our own user polls, most people utilize our Bitcoin Depot offerings for everyday transactions such as money transfers, sending international remittances, and making online purchases.
Bitcoin Depot works to minimize the impact of Bitcoin’s price fluctuations by keeping a small amount of Bitcoin on hand, which is roughly equal to $0.8 million, based on the disclosed documents.
“Our typical practice is to purchase Bitcoin through a liquidity provider such as Cumberland DRW or Abra. We replenish our Bitcoin only through purchases from leading Bitcoin liquidity providers and do not engage in any mining of Bitcoin ourselves.”
Bitcoin Depot highlighted two essential elements of its operational funding: Bitcoins kept in hot wallets to process customer requests and money gathered in Bitcoin Automated Teller Machines (BTMs) kiosks. By the end of December 2023, approximately 21% of Bitcoin Depot’s monthly average earnings came from cash held in their BTMs.
Established in 2016, Bitcoin Depot manages a substantial number of Bitcoin Automated Teller Machines (ATMs) worldwide. Known as BTMs, these machines enable users to buy or sell Bitcoin by inserting cash or using a debit card.
Based on information from CoinATMRadar, Bitcoin Depot is the global leader among cryptocurrency ATM operators with over 7,000 BTMs in operation as of April 2024. In comparison, CoinFlip and BitStop manage 4,800 and 2,500 machines respectively.
In the past, we noted that the number of new Bitcoin ATMs set up around the world decreased for the first time in 2023.
Based on the remarks of Bitcoin Depot CEO Brandon Mintz, it’s predicted that the Automated Teller Machine (ATM) sector will probably experience a strong comeback after the highly anticipated Bitcoin halving, scheduled to take place around this week.
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2024-04-16 11:48