The global installation of Bitcoin ATMs is experiencing a notable surge following the Bitcoin halving, as predicted by the CEO of a major Bitcoin ATM operator. Brandon Mintz, CEO of Bitcoin Depot, anticipates a global acceleration in installations, attributing this trend to the typical surge in crypto FOMO (fear of missing out) accompanying the Bitcoin halving period.
Topping off the roll, in 2023, the first occurrence of an annual fall off in crypto-currency ATM installations set in during almost a decade, primarily ascribed to a bear wave proclaimed as a result of crypto company failures. But there was a complete flipside in 2024; in the 1st three months of installed crypto ATMs 1,469, 3,000 number of removed were in 2023 by that same time.
Industry rebound predicted
Brandon Mintz expects a wider ATM industry to witness a comeback in Bitcoin’s rebirth while soaring past its previous price height of $20,000 in this March. It is underscored that the past bull markets have had a particular pattern of growing cryptocurrency, first with the users who follow the movement in order to avoid all the hassle and then during the FOMO phase which is characterized by a surge in visitors and consequently in the use of Bitcoin ATMs.
Despite the recent increase in ATM installations, Mintz highlights a concerning trend: an ATM operator termination rate dropped by almost 30% during the last six months. The failure of a major player (Coin Cloud with 5000 ATMs) in February 2023 showed the troubles lying heavy on the industry and made them worse due to the fluctuation of market value and the blockage of crypto exchanges.
Bitcoin Depot’s growth trajectory
Bitcoin Depot announced its performance for the fourth quarter and a full year in 2023. It was disclosed that the company’s revenues increased by 7% compared to 2022 to reach $689 million. Regarding the net income, it decreased from the 2022 level by 54% and totaled $1.6 million. As of Q1 of 2024, the business has hit 900 ATM installations in 24 U.S. states, most of which are convenience stores. The plan is to acquire close to 940 next.
Data gathered by CoinATMRadar reveals that Bitcoin Depot has been together with a few operators in this market. With second place going to Coinflip, which has more than 4,200 of ATMs, Bitstop comes third place and services almost 2,500. According to data, the United States occupies the largest share of ATMs with about 83%, the highest percentage so far, showing potential future growth.
The January agreement to trade basket Bitcoin ETFs in the US has sparked various debates concerning their possible influence on ATM usage for Bitcoin. But not Mintz: “Customers who buy Bitcoin ETFs usually do not differ from the price-conscious customers of the crypto ATMs, so won’t likely go exclusively to the more convenient ETF option.” To him, ETFs could be the driving force in permeating Bitcoin investment as more market players jump in the trend, resulting in higher ATM usage rates.
