Bitcoin Depot, the biggest ATM operator in the US, has stated that its earnings are independent of Bitcoin’s price despite the cryptocurrency market’s volatility. This insight was disclosed in the company’s 10-K annual report filed on April 15.
Bitcoin Depot made $689 million in 2023 and $647 million in 2022. The ATM operator’s revenue remains steady and unaffected by variable Bitcoin prices. This is because clients rely on ATMs for services, from money transfers and international remittances to online payments, and not for stock exchanges or speculation.
To minimize the risks connected with Bitcoin’s price volatility, Bitcoin Depot has a fairly low balance of almost $0.8 million, which could not get any higher at any moment.
“Our typical practice is to purchase Bitcoin through a liquidity provider such as Cumberland DRW or Abra. We replenish our Bitcoin only through purchases from leading Bitcoin liquidity providers and do not engage in any mining of Bitcoin ourselves,” reads the filing.
The company’s prepaid working capital will comprise Bitcoin Hot Wallets, which are reserved for fulfilling customer orders, and Bitcoin ATM kiosk cash. As of the last day of 2023, Bitcoin Depot’s monthly revenues accounted for approximately 21%.
In 2016, Bitcoin Depot created a strong network of Bitcoin ATMs around the world where people can deposit and withdraw funds in cash using debit cards. The CEO of Bitcoin Depot, Brandon Mintz, predicts that there will likely be a significant pickup in business after the world waits for Bitcoin’s halving, which is expected this week.
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