The CEO of a leading Bitcoin ATM operator anticipates a global surge in the installation of Bitcoin ATMs following the Bitcoin halving, a time when crypto FOMO (fear of missing out) typically intensifies.
In 2023, there was a notable decrease in crypto ATM installations, marking the first yearly decline in a decade. This downturn was attributed to a bear market exacerbated by the collapse of several crypto firms. However, Brandon Mintz, CEO of Bitcoin Depot, highlights a promising start to 2024, with 1,469 crypto ATMs installed in the first three months, compared to over 3,000 removed by the same time in 2023, according to CoinATMRadar data.
Mintz expresses optimism regarding the industry’s ATM rebound, especially with Bitcoin prices surging and surpassing its all-time high twice in March. He notes that during past bull markets, there’s a surge in crypto adoption, particularly during the FOMO phase, which attracted more customers to Bitcoin ATMs.
However, Mintz emphasises that this phase typically occurs later in the cycle and believes it’s still early in the current cycle. He points to the upcoming Bitcoin halving, scheduled for late April, as a significant event that historically triggers upticks in adoption and price surges.
While the count of ATMs has risen recently, Mintz reveals that the number of ATM operators has decreased over the past 18 months. He mentions the bankruptcy of Coin Cloud, a major operator with 5,000 ATMs, in February 2023, as one example of this trend.
Bitcoin Depot’s financial results for the fourth quarter and full year of 2023 show a 7% increase in revenues year-on-year, reaching $689 million, although net income dropped by 54% to $1.6 million. The company has plans to install 900 ATMs in the first quarter of 2024 and aims to deploy an additional 940 ATMs in convenience stores across 24 U.S. states.
Regarding the impact of spot Bitcoin ETFs, which were approved in the U.S. in January, Mintz believes they cater to a different customer base compared to Bitcoin ATMs. He explains that Bitcoin ATM customers, often underbanked or unbanked, primarily transact in cash, while Bitcoin ETF buyers typically have higher incomes and brokerage accounts.
Mintz predicts that increased adoption resulting from Bitcoin ETFs driving up Bitcoin prices could lead to more ATM usage, ultimately benefiting the industry. He views the ETFs as more supportive than detrimental to Bitcoin ATM operators in the long run.