- Bitcoin Depot reported a Q1 profit of $12.2 million, reversing a $4.2 million loss from the previous year.
- The company’s revenue grew 19% year-over-year, reaching $164.2 million, driven by more kiosk deployments and larger transactions.
- Shares of Bitcoin Depot rose 20% to $2.04 but remain down 79% from their Nasdaq debut in July 2023.
- Lawmakers raised concerns about fraud targeting elderly Americans, leading to proposed limits and increased compliance efforts.
- Bitcoin Depot is seeking a license to operate in New York, which is seen as a significant potential market.
Bitcoin Depot, a major Bitcoin ATM operator based in Atlanta, reported a $12.2 million profit in the first quarter of the year. This turnaround from a $4.2 million loss during the same period last year coincided with a jump in the company’s revenue and an increase in kiosk usage across North America.
The company’s revenue climbed to $164.2 million, a 19% increase compared to the previous year. Bitcoin Depot attributed the growth to more kiosk installations and a rise in the median amount of each transaction, as detailed in its SEC filing. As a result of the positive earnings, the company’s stock surged by 22% to $2, although this remains significantly below its initial Nasdaq listing price.
As part of its treasury management, Bitcoin Depot increased its Bitcoin holdings to $7.8 million from $600,000 the previous quarter, following a shift to recording these assets at fair value. The company has also made small purchases of Ethereum.
Bitcoin Depot operates more than 8,400 kiosks in 48 states, allowing users to convert cash to Bitcoin at locations like convenience stores and gas stations. The company is seeking a license to expand into New York, which CEO Brandon Mintz said could eventually support up to 3,000 machines, according to a recent shareholder presentation.
Since listing on the Nasdaq in July 2023, Bitcoin Depot shares have dropped 79%, giving the company a market capitalization of $44 million based on current prices, according to Yahoo Finance. The company said its Q1 results marked a turnaround from the previous quarter, when new regulations in California placed limits on daily transaction amounts and caused revenue to fall.
Lawmakers have raised concerns about increasing fraud targeting older Americans through Bitcoin ATMs. A bill introduced by Senator Dick Durbin (D-IL) would cap new customer transactions at $2,000 per day and require refunds for fraud reported within 30 days. In 2024, Americans over 60 reported $107 million in losses related to Bitcoin ATMs, according to an FBI report.
Bitcoin Depot states that it has 19 compliance staff and uses transaction monitoring and anti-money-laundering tools to address these risks. Some officials advocate for more widespread availability of Bitcoin kiosks. For example, Representative Lance Gooden (R-TX) proposed installing them in federal buildings as an educational resource, stating in a letter that these installations could help people unfamiliar with cryptocurrency.
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