Bitcoin Depot Inc.

Bitcoin Depot operates in the digital financial system, specifically within the cryptocurrency kiosk industry, where it enables customers to convert cash into Bitcoin via Bitcoin ATMs (BTMs) and its BDCheckout product ⁴. The company's mission is to "Bring Crypto to the Masses TM" ⁵. As of December 31, 2025, Bitcoin Depot maintained the leading position among cash-to-Bitcoin BTM operators in the U.S., holding an approximate 23% market share ⁶, and also held a strong position in Canada ⁷. The total number of BTMs deployed globally grew from approximately 1,000 in January 2017 to 40,000 by December 31, 2025, representing a CAGR of approximately 42% ⁸. Approximately 90% of installed BTMs worldwide reside in the U.S. and Canada as of December 31, 2024, where Bitcoin Depot had a market share of 25% and 8%, respectively ⁹.

Bitcoin Depot's core business model revolves around generating revenue from the sale of Bitcoin to customers using cash ¹⁰. This revenue primarily consists of a markup applied to the Bitcoin's exchange value and a separate flat transaction fee ¹¹. The company's income is largely transactional, derived from these customer-initiated purchases at BTM kiosks and through its BDCheckout product ¹². Primary customer segments include individuals who utilize cash as their primary means of initiating transactions and those seeking a simpler alternative to online cryptocurrency exchanges ¹³. The company also operates BitAccess, a BTM device and transaction processing system that provides software and operational capabilities to third-party BTM operators, generating software revenue ¹⁴.

The company's offerings include approximately 9,700 BTMs in retailer locations across the U.S., Canada, Australia, and Hong Kong as of December 31, 2025 ¹⁵. These BTMs offer one-way cash-to-Bitcoin exchange ¹⁶. The BDCheckout product, launched in June 2022, is accepted at approximately 16,300 retail locations and allows users to load cash into their accounts at checkout counters to purchase Bitcoin via the mobile app ¹⁷. The mobile app also includes a "buy online" feature connecting consumers to a third-party service, Simplex powered by Nuvei, for Bitcoin purchases without a kiosk or BDCheckout ¹⁸. The markup percentage for BTM kiosk transactions ranged between 15% and 50% for the year ended December 31, 2025, while BDCheckout transactions had a 15% markup ¹⁹. A flat fee of $3.00 is charged for BTM transactions and $3.50 for BDCheckout transactions ²⁰. The company also receives a 12% commission for website transactions through December 31, 2025 ²¹.

For the fiscal year ended December 31, 2025, Bitcoin Depot reported total revenue of $614.851 million ²², an increase from $573.703 million in the prior year ²³. Gross profit for 2025 was $105.646 million ²⁴, with a gross profit margin of 17.2% ²⁵. Operating income stood at $41.213 million ²⁶. Net income for the period was $4.709 million ²⁷, and diluted EPS was $(0.86) ²⁸. Cash and cash equivalents totaled $65.632 million as of December 31, 2025 ²⁹. Total notes payable (current and non-current) amounted to $60.492 million ³⁰, excluding unamortized debt discounts and debt issuance costs of $0.4 million ³¹. The company generated $33.978 million in cash flow from operating activities ³².

Comparing year-over-year, revenue increased by $41.148 million, or 7.2%, from $573.703 million in 2024 to $614.851 million in 2025 ³³. Cost of revenue (excluding depreciation and amortization) increased by $19.292 million, or 4.0%, from $482.263 million in 2024 to $501.555 million in 2025 ³⁴. Gross profit margin expanded from 14.2% in 2024 to 17.2% in 2025 ³⁵. Operating income increased by $17.003 million, or 70.2%, from $24.210 million in 2024 to $41.213 million in 2025 ³⁶. Net income decreased by $3.105 million, or 39.7%, from $7.814 million in 2024 to $4.709 million in 2025 ³⁷. The increase in revenue was primarily due to an increase in total kiosks in operation and an increase in median transaction size ³⁸. The decrease in net income was influenced by an increase in other expenses, primarily driven by an $18.5 million arbitration judgment liability ³⁹.

Significant operational developments during the period include the acquisition of Pelicoin and National Bitcoin ATM in the latter half of 2025, integrating over 500 kiosks across 27 states ⁴⁰. The company also launched operations in Hong Kong, marking its entry into the Asian market ⁴¹. In January 2026, Scott Buchanan was appointed CEO, with founder Brandon Mintz transitioning to Executive Chairman ⁴². Additionally, the acquisition of Instant Coin Bank was finalized in January 2026, further consolidating the company's presence in Texas and Oklahoma ⁴³. On February 27, 2026, Bitcoin Depot acquired Kutt, Inc., a peer-to-peer social betting platform, diversifying its product offerings beyond its core Bitcoin ATM business ⁴⁴. The company also implemented a new compliance enhancement in February 2026, requiring customers to provide identification for every transaction at its kiosks ⁴⁵.

Bitcoin Depot expects revenue for its core business in 2026 to be down in the range of 30% to 40% ⁴⁶. This anticipated decline is attributed to the company's fraud mitigation efforts, which, while effective in protecting customers, are expected to result in materially lower revenue levels than in prior years ⁴⁷. Regulatory efforts focused on consumer fraud have imposed, and are expected to continue to impose, significant restrictions on the business, leading to sustained pressure on financial performance ⁴⁸.

The company intends to continue its geographical and retailer expansion, aiming for more physical locations at existing partners and building new partner relationships for greenfield market penetration ⁴⁹. It has applied for a license to operate in New York, a market estimated to support thousands of kiosks ⁵⁰. Given that approximately 90% of BTMs worldwide are in North America as of December 31, 2024, the company sees an attractive international expansion opportunity ⁵¹. Bitcoin Depot also plans to pursue inorganic growth through strategic bolt-on acquisitions to strengthen its market position and supplement in-house capabilities in hardware kiosks and software, as well as diversify into near-neighbor and complementary lines of business ⁵².

Operationally, the company intends to reinvest the majority of its profits back into the business to develop new products and services, enhance brand recognition, and grow its user base ⁵³. The expansion of BDCheckout to new locations across the U.S. and Canada is expected to diversify revenue streams and further grow transaction volumes, revenue, and profitability ⁵⁴. The company's costs associated with BDCheckout transactions are lower than BTM transactions, primarily due to significantly greater operating expenses for BTMs, including cash collection fees and short-term lease payments ⁵⁵. However, the profitability of the two services is similar due to a higher markup applied to BTM transactions to support their higher costs ⁵⁶.

Planned capital allocation includes investments in research and development to develop new software solutions and enhance existing ones, particularly to ensure regulatory compliance ⁵⁷. The company's ATM Program, established in July 2025, allows for the sale of up to $100 million of equity securities, with $14.9 million remaining available for issuance as of December 31, 2025 ⁵⁸. However, the company is subject to the "baby shelf" rule, limiting sales to one-third of its public float during any 12 consecutive months until its public float exceeds $75 million ⁵⁹. The company has not paid any cash dividends on its common stock to date and does not intend to in the foreseeable future, anticipating retaining all future earnings for business development and general corporate purposes ⁶⁰.

Management explicitly flagged structural headwinds and execution risks related to consumer fraud, noting that bad actors use sophisticated methods to bypass compliance controls ⁶¹. This has necessitated increasingly stringent KYC and compliance measures, such as requiring identification for every transaction at kiosks, which is expected to reduce transaction volumes and deter potential customers ⁶². Regulatory efforts aimed at the crypto ATM industry, including increased compliance costs, transaction limitations, and enhanced verification requirements, are expected to have a material adverse impact on revenues, profitability, and business prospects ⁶³.

Bitcoin Depot faces material risks from the highly volatile nature of cryptocurrency prices, which directly impacts its revenue and transaction volumes, as a decline in Bitcoin prices could decrease user transactions ⁶⁴. The company is exposed to intense competition from traditional financial institutions, fintech companies, and other cryptocurrency businesses, many of which have greater resources and established user bases ⁶⁵. An extensive and evolving regulatory landscape, including anti-money laundering, money transmission, and virtual currency business activity laws, poses significant risks; failure to comply or adverse changes in these regulations could lead to fines, license revocations, and operational restrictions ⁶⁶. Geopolitical developments, such as military conflicts and trade wars, along with general macroeconomic conditions like inflation and interest rate fluctuations, could reduce consumer confidence and spending, thereby decreasing demand for cryptocurrencies and related services ⁶⁷. Operational risks include potential disruptions in kiosks or software due to hardware/software defects, cyberattacks, or natural disasters, which could harm reputation and lead to financial losses ⁶⁸. The company also faces risks from its reliance on third-party service providers for kiosk manufacturing, logistics, and banking services, as interruptions or failures from these parties could impair operations ⁶⁹. As of December 31, 2025, approximately $34.1 million of the company's $63.8 million in cash, cash equivalents, and interest-bearing deposits was not subject to insurance protection against loss or was in excess of deposit insurance limits at banks ⁷⁰.

Management's message to shareholders emphasizes a commitment to robust compliance procedures and ease of use, which they believe creates a compounding effect of increased user traffic, attracting more retail partners, and further driving users to BTMs ⁷¹. They highlight the company's scale and leadership position as enabling a deeper understanding of user needs and continuous innovation, such as the launch of BDCheckout ⁷². Management explicitly states that while fraud mitigation efforts have been effective in protecting customers, these efforts are expected to result in the company recording materially lower levels of revenue than in prior years, with revenue for the core business in 2026 expected to be down in the range of 30% to 40% ⁷³. The three strategic priorities emphasized for the period ahead are geographical and retailer expansion, leveraging scale and profitability to reinvest in the business, and pursuing strategic acquisitions and partnerships ⁷⁴.