Bitcoin Depot Converts Crypto ATMs to Software

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.


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Bitcoin Depot Surpasses 5,000 Bitcoin ATMs In North America

The popular bitcoin ATM network now has over 5,000 machines scattered across the U.S. and Canada to meet mainstream demand.

Over the past six months, bitcoin ATM company Bitcoin Depot has more than tripled its machine count across the U.S. and Canada, according to a press release. The expansion was fueled by an appetite for BTC from a wide range of communities in North America, especially the unbanked. Bitcoin ATMs increase convenience by enabling physical purchases with cash  without requiring the customer to have a bank account  but also entail high costs.

“It’s no doubt the crypto market has captured mainstream interest, and the demand from consumers and retail industry giants continues to grow,” said Brandon Mintz, president and CEO of Bitcoin Depot, per the release. “This gives us a greater opportunity to expose Bitcoin Depot ATMs to individuals seeking convenient access to alternative financial services and cryptocurrency.”

In July, Bitcoin Magazine detailed the steep increase in bitcoin ATM kiosks in the U.S., which had nearly doubled year over year, indicating a growing demand from retail investors seeking convenience. Since then, the number of machines has grown by more than 11% to 42,266 bitcoin ATMs on American soil, according to the independent research website How Many Bitcoin ATMs.

The rising popularity of bitcoin, paired with the assurances it can provide regular people as central bank monetary policies erode their purchasing power, has led to kiosks popping up at gas stations and grocery stores.

Also in July, convenience store chain Circle K partnered with Bitcoin Depot to bring bitcoin ATMs to its stores in the U.S. and Canada. At the time, the franchise had already installed over 700 machines.

​​”We’re thrilled to achieve a new and tremendous milestone with 5,000+ crypto ATMs on the heels of Bitcoin Depot’s five-year anniversary and a long-term partnership with Circle K,” Mintz added.

However, the increased convenience of purchasing bitcoin through ATMs carries additional costs in the form of high fees and often know-your-customer (KYC) procedures. Some operators charge as much as 30% in fees for every purchase at their ATM. Identification procedures range from phone number verification for smaller purchases to ID submission for bigger ones.


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Bitcoin Depot’s crypto ATMs surpass 5,000 as adoption grows

Bitcoin Depot’s cryptocurrency ATM network continues to expand, with North American installations surpassing 5,000 for the first time amid a surge in retail adoption. 

With the milestone, Bitcoin Depot is once again the largest ATM network in North America, the company announced Thursday. The number of kiosks has tripled in the last six months, giving more users access to cryptocurrency transactions without requiring a bank or other third-party financial services provider.

Bitcoin Depot’s partnership with Circle K convenience stores has been a major source of growth for their crypto kiosks. As Cointelegraph reported, the two companies announced in July that the convenience store chain will be home to thousands of Bitcoin ATM machines.

The growth of crypto kiosks is viewed by many as a proxy for retail adoption of Bitcoin (BTC) and other digital assets. Crypto ATM installations have surged in El Salvador, where Bitcoin recently became legal tender, giving people an easier way to transact in BTC or convert it to fiat.

Salvadorans are also making use of their government-backed Chivo cryptocurrency wallet. According to President Nayib Bukele, more than a third of the country’s residents are “actively” using Chivo.

Related: El Salvador ranks third in global Bitcoin ATM installations, data finds

Nevertheless, the growth of Bitcoin ATMs isn’t without risk. Kraken Security Labs, the security outfit of the popular cryptocurrency exchange, warned earlier this week that a “large number” of Bitcoin ATMs are susceptible to being hacked because administrators never changed the default admin QR code. The security team said that if hackers are able to obtain the admin code they can essentially “walk up to an ATM and compromise it.”