Bitcoin Depot Strikes $885 Million Deal: Plans to go Public

Paigambar Mohan Raj
Source: PR Newswire

According to exclusive coverage by Wall Street Journal (WSJ), crypto ATM provider Bitcoin Depot has reached an $885 million SPAC (Special Purpose Acquisition Company) deal to take it public.

The merger between the SPAC GSR II Meteora Acquisition Corp. and Atlanta-based Bitcoin Depot is set to be announced on Thursday.

A SPAC, also known as a blank-check firm, is a shell business that solicits investment capital and trades on a stock exchange. The firm’s sole purpose is to merge with a private company and take it public. The SPAC is replaced in the stock market by the firm going public after the deal is finalized.

Bitcoin Depot was founded in 2016 and has over 7000 outlets in the US and Canada. Bitcoin ATMs are not like fiat ATMs. They do not allow users to withdraw or deposit cash. Instead, they allow users to purchase crypto by scanning a code and using cash. Such crypto ATMs make the emerging digital asset class more available. Furthermore, crypto ATMs are becoming more and more popular every year. In 2019, there were around 6000 such ATMs. Fast forward to 2022, there are nearly 40,000. Nonetheless, the growth did stall for some time.

How has Bitcoin depot fared in the bear market?

Regardless of the current bearish sentiment, Bitcoin Depot reports being doing “fantastic.” The company has reported continued growth, despite the market behavior.

Bitcoin Depot CEO Brandon Mintz stated,

“We’re actually doing fantastic right now regardless of the market.”

The firm reported record sales and earnings before interest, taxes, depreciation, and amortization in the second quarter of 2022. According to Mintz, their growth indicates the growing use of cryptocurrencies for payments and for sending money overseas.

Bitcoin Depot recently introduced a program that enables customers to use cash at more than 8,000 locations without physical kiosks to purchase cryptocurrencies.

Bitcoin ATMs operating in the United States must cooperate with the Financial Crimes Enforcement Network and adhere to the anti-money-laundering Bank Secrecy Act. According to Mintz, the company has a sophisticated compliance system that, depending on the nature of the transaction, may occasionally include requesting additional documents from customers.

Gus Garcia, the SPAC’s co-CEO, said that he is confident in Bitcoin Depot’s financing options because of the company’s continued steady growth.