Bitcoin Depot Inc. Annual Report on Form 10-K
Bitcoin Depot Inc. filed its annual report on Form 10-K for the period ended December 31, 2024. The company reported a market value of approximately $111 million as of June 30, 2024, based on the closing price of its Class A common stock on the NASDAQ. As of March 20, 2025, the company had 21,670,569 shares outstanding of Class A common stock, 1,075,761 shares outstanding of Class E common stock, and 41,193,024 shares outstanding of Class V common stock. The report does not provide detailed financial information, but it does indicate that the company is a non-accelerated filer and a smaller reporting company, and that it is not an emerging growth company.
Financial Performance Overview
Bitcoin Depot Inc. is the largest operator of Bitcoin ATMs (BTMs) across North America, helping to bring cryptocurrency to the masses. The company’s mission is to provide a simple and convenient way for cash-based consumers to access the digital financial system.
For the year ended December 31, 2024, Bitcoin Depot reported revenue of $573.7 million, a decrease of 16.7% compared to the prior year. This decline was primarily due to a decrease in kiosk transaction volume, which was impacted by the relocation of approximately 1,000 BTMs during the year and regulatory changes limiting transaction sizes in California. Despite the revenue decline, the company remained profitable, generating net income of $7.8 million, up significantly from $1.5 million in 2023.
Revenue and Profit Trends
Bitcoin Depot’s revenue is primarily driven by the sale of Bitcoin through its BTM kiosks and BDCheckout service. The company charges a markup on the Bitcoin price, typically ranging from 15-50%, as well as a flat transaction fee. While Bitcoin prices increased significantly in 2024, the company’s revenue was not directly correlated, demonstrating the resilience of its business model.
The decrease in revenue during 2024 was largely attributable to lower transaction volumes, which the company attributed to the relocation of approximately 1,000 BTMs and regulatory changes in California that limited transaction sizes. However, the company was able to maintain profitability through disciplined cost management, with cost of revenue declining 18.0% year-over-year.
Operating expenses decreased by 4.7% in 2024, driven by lower selling, general and administrative costs. Depreciation and amortization also declined, reflecting the company’s focus on optimizing its operations. As a result, Bitcoin Depot’s income from operations decreased by a more modest 20.5% to $24.2 million.
The company’s net income for the year was $7.8 million, a significant improvement from $1.5 million in 2023. This was primarily due to a decrease in other expenses, which included a one-time $14.9 million charge related to the PIPE financing transaction in the prior year.
Strengths and Weaknesses
One of Bitcoin Depot’s key strengths is its dominant market position in the BTM industry, with approximately 8,500 kiosks installed across North America as of the end of 2024. This extensive network provides the company with significant scale advantages and makes it a preferred partner for major retail chains like Circle K.
The company’s sophisticated Bitcoin management process, which involves maintaining a relatively low balance of Bitcoin in its hot wallets and replenishing supplies on a just-in-time basis, also helps to mitigate its exposure to cryptocurrency price volatility. This approach, combined with the company’s diversified revenue streams from BTM transactions, BDCheckout, and other services, contributes to the stability of its financial performance.
However, Bitcoin Depot’s reliance on the BTM business model exposes it to regulatory risks, as evidenced by the impact of the California transaction size limits in 2024. The company’s ability to continue expanding its network and driving user adoption will also be crucial to its long-term success.
Additionally, the company’s significant debt load, with $55.5 million in outstanding notes payable as of the end of 2024, could constrain its financial flexibility and limit its ability to invest in growth initiatives. The company will need to carefully manage its debt obligations and cash flow to ensure it can continue funding its operations and future expansion.
Outlook and Future Prospects
Looking ahead, Bitcoin Depot’s management remains optimistic about the company’s growth prospects, citing the continued adoption of cryptocurrency and the potential for further expansion of its BTM network and BDCheckout service.
The company’s recent acquisition of BitAccess and the launch of BDCheckout are expected to diversify its revenue streams and provide opportunities for cost savings and operational efficiencies. However, the financial impact of these initiatives has been limited so far, and the company will need to execute effectively to realize the full benefits.
Regulatory changes will also be a key factor in Bitcoin Depot’s future performance. The company operates in a rapidly evolving regulatory environment, and any new laws or regulations could have a material impact on its business. Maintaining compliance and adapting to changing requirements will be an ongoing challenge.
Overall, Bitcoin Depot appears to be well-positioned to capitalize on the growing demand for cryptocurrency access, particularly among cash-based consumers. However, the company will need to navigate the operational and financial challenges it faces, including managing its debt, optimizing its kiosk network, and adapting to regulatory changes, in order to sustain its growth and profitability in the years ahead.
