Bitcoin ATMs Anticipate Global Surge Following Bitcoin Halving, Says Bitcoin Depot CEO
Summary:
An increase in global Bitcoin ATM installations is anticipated following the Bitcoin halving event, says Bitcoin Depot CEO, Brandon Mintz. The year 2023 saw the first decline in crypto ATM installations in a decade due to a bearish crypto market and failed crypto firms. However, the Q1 2024 commenced with a burst of ATM installations in comparison to the previous year. Mintz is expecting a surge in crypto adoption and customer numbers, linked to a Bitcoin halving later in the cycle. Despite a rise in Bitcoin ATM numbers, ATM operator count has dwindled and top operator Coin Cloud went bankrupt. Bitcoin Depot has plans for more ATM installations throughout 2024 to cater to the underbanked or unbanked majority of their clientele.
Following the Bitcoin halving, Bitcoin ATM installations are predicted to accelerate globally, chief executive of major Bitcoin ATM operator, Bitcoin Depot, Brandon Mintz, has said. The year 2023 marked the first yearly decrease in crypto ATM installations in ten years, likely triggered by a poor market performance, along with the collapse of various crypto companies. However, the first quarter of 2024 began with a surge, seeing 1,469 crypto ATMs installed in comparison to over 3,000 that were removed by around the same period in 2023, data from CoinATMRadar reveals.
Brandon Mintz is anticipating a sector-wide resurgence as Bitcoin is already experiencing highs not seen before. Historical data shows that elevated adoption, leading to increased customer numbers, typically happen later in bullish market cycles when Bitcoin FOMO (fear of missing out) sets in. Mintz also mentioned that the much-awaited Bitcoin halving event scheduled for late April, where Bitcoin's mining rewards are halved, usually precedes a price surge, triggering the FOMO phase.
Despite the recent growth in ATM counts, Mintz said the number of ATM operators have dwindled over the past year and a half. Coin Cloud, the operator with 5,000 ATMs, filed for bankruptcy in February 2023. The slump was rapid following the November 2022 failure of the crypto exchange FTX, leading to a crypto market crash.
Bitcoin Depot reported a 7% annual increase in full-year revenues to $689 million for 2023, but net income fell by 54% to $1.6 million. It has also invested in 900 ATMs to be installed in Q1 2024 with plans to roll out 940 ATMs across 24 states.
Despite the influx of spot Bitcoin exchange-traded funds (ETFs) seen as catalysts for Bitcoin adoption, Mintz is not concerned about their effect on Bitcoin ATMs, explaining that these cater to a completely different clientele. He described the majority of their customers as underbanked or unbanked who mostly deal in cash and are less likely to hold a brokerage account. Mintz is of the opinion that the elevated prices caused by Bitcoin ETFs could result in increased usage of Bitcoin ATMs as adoption grows.
Published At
3/29/2024 2:13:00 AM
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