ATLANTA - Bitcoin Depot, a prominent Bitcoin ATM operator in North America, has announced the purchase of approximately 2,300 Bitcoin ATMs as part of its ongoing expansion efforts. The acquisition, which was made at over a 50% discount per kiosk compared to usual costs, is set to increase the company's total number of kiosks to over 10,000 once all units are delivered.
The majority of the new kiosks are expected to be deployed within the next two quarters, addressing the increasing demand from retailers. So far in 2024, Bitcoin Depot has signed agreements with over 2,000 new retail locations.
"This purchase will expand our fleet to over 10,000 kiosks and provides a cost-efficient opportunity to continue our expansion this year and further grow our industry-leading market share," said CEO Brandon Mintz.
Bitcoin Depot's kiosks enable users to convert cash into Bitcoin, facilitating access to digital financial services such as payments, transfers, remittances, online purchases, and investments. The company's growth strategy has recently included a partnership with a major grocery chain and the launch of a profit share program.
With over 7,300 Bitcoin ATM locations already in place, Bitcoin Depot holds the largest market share in North America. The company's expansion has also reached new markets, including Puerto Rico and Australia, surpassing its goal of 8,000 locations ahead of schedule.
The information in this article is based on a press release statement from Bitcoin Depot.
InvestingPro Insights
As Bitcoin Depot aggressively expands its network of Bitcoin ATMs, it's essential for investors to consider the financial health and market performance of the company. According to InvestingPro data, the company's market capitalization stands at a modest $97.76M, suggesting a relatively small-cap venture in the growing cryptocurrency service market. Despite an overall revenue growth of 6.51% in the last twelve months as of Q4 2023, the company's recent quarter saw a slight revenue decline of 0.84%, indicative of potential short-term challenges.
The volatility of the industry is also reflected in the company's stock performance. Over the past month, the stock has seen a significant price drop of 30.71%, with a six-month total return plummeting by 38.15%. This high price volatility is a critical consideration for investors, as highlighted by one of the InvestingPro Tips. Furthermore, with a negative P/E ratio of -1.03, investors may be wary of the company's profit growth potential, although another InvestingPro Tip suggests that net income is expected to grow this year, offering a glimmer of hope for future profitability.
For those considering an investment in Bitcoin Depot, the InvestingPro platform offers additional insights and metrics that can help make an informed decision. Interested readers can find further InvestingPro Tips by visiting https://www.investing.com/pro, and with the exclusive coupon code PRONEWS24, they can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription. As of now, there are 14 additional tips available on InvestingPro that could provide a more comprehensive understanding of Bitcoin Depot's financial and market position.
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