Bitcoin

April

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Bitcoin Depot, a leading Bitcoin ATM operator, has reported no correlation between its profits and Bitcoin’s price.</li>
 <li>The company’s services are primarily used for non-speculative purposes, reducing its exposure to Bitcoin’s volatility.</li>
</ul>
<p>Bitcoin Depot, a prominent operator of <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a> (BTC) ATMs, has revealed that its earnings are not linked to the price fluctuations of Bitcoin.</p>
<p>This finding was outlined in the company’s annual 10-K report, filed on April 15. It showed that Bitcoin Depot’s revenues for 2023 and 2022, which amounted to $689 million and $647 million respectively, did not correlate with Bitcoin’s price, despite its volatility.</p>
<h2 id="reasons-for-lack-of-correlation">Reasons for Lack of Correlation</h2>
<p>The lack of correlation between Bitcoin Depot’s revenues and Bitcoin’s price is partly due to the nature of the services the company provides.</p>
<p>The company explained that based on their internal surveys, a majority of their customers use their services for non-speculative purposes. These include money transfers, international remittances, and online purchases.</p>
<p>Bitcoin Depot also reduces its exposure to Bitcoin’s volatility by maintaining a relatively low balance of the cryptocurrency. The company typically purchases Bitcoin through liquidity providers like Cumberland DRW or Abra, and does not engage in Bitcoin mining.</p>
<h2 id="bitcoin-depot-s-operations">Bitcoin Depot’s Operations</h2>
<p>Bitcoin Depot’s operations require two main components of working capital: Bitcoin in hot wallets to fulfill user orders and cash accumulated in the Bitcoin ATM kiosks. As of December 31, 2023, cash in the ATM kiosks accounted for about 21% of the company’s average monthly revenues.</p>
<p>Established in 2016, Bitcoin Depot operates a substantial network of Bitcoin ATM machines globally. These ATMs, also known as BTMs, allow users to deposit and withdraw money using cash or a debit card.</p>
<p>As per CoinATMRadar data, Bitcoin Depot is the largest cryptocurrency ATM operator worldwide, operating more than 7,000 BTMs as of April 2024. Its primary competitors, CoinFlip and BitStop, operate 4,800 and 2,500 machines, respectively.</p>
<p>In 2023, the global adoption of Bitcoin ATMs experienced the first-ever decline in terms of the number of machines installed. However, Bitcoin Depot’s CEO, Brandon Mintz, anticipates a significant rebound in the ATM industry following the much-anticipated Bitcoin halving event.</p>

Crypto ATM Company’s Earnings Remain Steady Despite Bitcoin Price Volatility

Inhaltsverzeichnis

crypto.ro global

Weitere Artikel, die am 16. Apr. 2024 veröffentlicht wurden

Ondo Price Prediction: ONDO Plummets 17%, But Investors Are Rushing To Buy This New Solana Meme C...

Exploring Bitcoin’s Potential for Major Price Movements

Allegedly, Surprise Altcoin is Preparing to Sign an Agreement with Lionel Messi's Team!

The Smart Money Is On These Altcoins for 2024: Find Out Why

RailGun: Praised by Vitalik Buterin, Used by North Korean Hackers

Bitcoin halving will lead to more sustainable BTC mining: Report

Abonniere unseren kostenlosen Newsletter und erhalte tägliche Krypto-Updates!