Bitcoin Depot, a leading provider of physical Bitcoin ATMs and kiosks, has announced the successful conversion of all its 7,000 crypto ATMs to a software-based offering powered by BitAccess. The software conversion drive came after Bitcoin Depot acquired majority equity in BitAccess in November 2022. With this strategic move, Bitcoin Depot aims to increase its market share and reduce operational costs while addressing the declining trend in the crypto ATM market.
The decision to convert physical crypto ATMs to software-based offerings is a response to several challenges facing the industry. For one, geopolitical tensions and revenue decline have forced some ATM providers to shut down operations, reducing the overall number of crypto ATMs worldwide. Additionally, the high cost of annual software licensing fees has become a burden for ATM operators, especially in a market with decreasing demand.
By vertically integrating its hardware and software, Bitcoin Depot’s software-based offering eliminates the need for annual software licensing fees, which previously accounted for $3 million in annual operational costs. The software-based offering is expected to be more efficient and cost-effective, making it an attractive option for both ATM operators and customers.
Bitcoin Depot’s move to software-based offerings comes at a time when the market for crypto ATMs has seen a decline in installations since July 2022, according to data from Coin ATM Radar. The decline is likely due to several factors, including increased regulatory scrutiny, competition from online trading platforms, and the ongoing effects of the COVID-19 pandemic. Despite these challenges, Bitcoin Depot remains committed to expanding its reach and providing reliable, convenient, and secure access to cryptocurrencies.
In addition to its software conversion drive, Bitcoin Depot has also revealed plans to go public in 2023 via an $885 million deal with a special-purpose acquisition company. This move is expected to provide additional funding and support for the company’s growth and expansion efforts.
In conclusion, Bitcoin Depot’s conversion of its physical crypto ATMs to software-based offerings is a significant step towards reducing operational costs and increasing efficiency in the crypto ATM market. By vertically integrating its hardware and software, Bitcoin Depot is well-positioned to capitalize on the growing demand for cryptocurrencies and provide innovative solutions for ATM operators and customers alike.