ATLANTA - Bitcoin Depot Inc. (NASDAQ: BTM), a prominent Bitcoin ATM operator in the U.S., has sold an additional 200 Bitcoin ATM kiosks to investment firm Sopris Capital, indicating a significant expansion move in North America. The deal, part of Bitcoin Depot's profit-sharing program, was announced today following an initial purchase of 50 kiosks by Sopris in March.
This sale brings Sopris Capital's total ownership to 250 Bitcoin Depot kiosks, reflecting their confidence in the company's growth trajectory and expansion strategy. Andrew Paul, Founder and CEO of Sopris, expressed that the decision to increase their investment is a testament to the attractive investment opportunity presented by Bitcoin Depot's operations.
Bitcoin Depot's program offers partners like Sopris a comprehensive package including the kiosk hardware, operating software, installation, and ongoing operational support. Moreover, partners receive a monthly share of the profits generated by the ATMs, creating a passive income stream.
"We are thrilled to deepen our partnership with Sopris Capital," said Brandon Mintz, CEO of Bitcoin Depot. Mintz's remarks underscore the mutual confidence and strategic alignment between the two firms.
Bitcoin Depot, founded in 2016, aims to bridge the gap between cash users and the digital financial system. The company provides a user-friendly process for converting cash into Bitcoin at approximately 7,400 kiosk locations across North America as of April 1, 2024. These kiosks enable users to engage in various financial activities such as payments, remittances, online purchases, and investments using Bitcoin.
The expansion comes amidst a dynamic period for the cryptocurrency industry, with Bitcoin Depot positioning itself as a key player in facilitating access to digital currencies.
The information in this article is based on a press release statement from Bitcoin Depot.
In other recent news, Bitcoin Depot Inc. has been making significant strides in its corporate governance and expansion efforts. The company recently announced the appointment of Teri G. Fontenot to its Board of Directors and Audit Committee Chair, following the departure of a previous board member.
Fontenot, with a distinguished background in the healthcare sector, is set to serve until the next annual meeting of stockholders.
The company has also been proactive in its expansion efforts, acquiring approximately 2,300 Bitcoin ATMs, which will increase their total kiosks to over 10,000. This acquisition is part of a strategy to cater to increasing demand from retailers, with agreements already signed with over 2,000 new locations this year.
In collaboration with Fareway Stores Inc., Bitcoin Depot plans to install Bitcoin transaction kiosks in 66 of the grocery chain's stores across seven Midwestern states. This aligns with the company's global expansion strategy, which includes recent growth into Australia and Puerto Rico.
InvestingPro Insights
As Bitcoin Depot Inc. (NASDAQ: BTM) ramps up its presence in the digital currency space with the recent sale of Bitcoin ATM kiosks, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Bitcoin Depot has a market capitalization of $92.49 million, which places it among the smaller-cap companies in the market. Despite a challenging period for the cryptocurrency industry, the firm's revenue over the last twelve months as of Q1 2024 stands at $663.9 million, indicating a slight revenue growth of 1.22%. This growth is noteworthy as it suggests resilience in Bitcoin Depot's operations amid the market's volatility.
However, the company's financials also show signs of strain, with a P/E ratio (adjusted) of 4.13, which could signal to investors that the stock might be undervalued if the company's earnings were to stabilize. From an operational perspective, Bitcoin Depot maintains a gross profit margin of 19.6%, which is a critical indicator of the company's efficiency at generating revenue from its core business activities without considering the costs of overhead.
An InvestingPro Tip highlights that Bitcoin Depot's stock price often moves in the opposite direction of the market, which could be an attractive feature for investors looking for diversification or counter-market trends in their portfolio. Additionally, the company operates with a moderate level of debt, which is an important consideration for investors assessing the company's financial risk.
For those interested in further analysis, InvestingPro offers additional tips on Bitcoin Depot, providing deeper insights into its valuation, profitability, and market trends. To access these tips and make more informed investment decisions, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 11 more InvestingPro Tips available for Bitcoin Depot at https://www.investing.com/pro/BTM, which could further guide investors in evaluating the company's potential.
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