Bitcoin Depot Completes $885 Million SPAC Deal

UTC by Babafemi Adebajo · 2 min read
Bitcoin Depot Completes $885 Million SPAC Deal
Photo: Shutterstock

According to Chief Executive of Bitcoin Depot, Brandon Mintz, the firm made record sales and earnings in the second quarter.

Bitcoin Depot, an Atlanta-based Bitcoin ATM operator and leading fintech company, is striking an $885 million SPAC deal that would take the company public.

The deal comes after a prolonged bear market that has wiped off 70% of Bitcoin’s value from its November all-time high. By December 2021, the firm surpassed 6,000 crypto ATMs across the United States and Canada leveraging on its partnership with Circle K.

Most recently, the firm launched the BDCheckout that allows customers to buy Bitcoin directly into their Bitcoin Depot digital wallet using cash. Customers will be able to do this across 8000 kiosks using the company app.

Bitcoin Depot Unaffected by Bearish Market

Meanwhile, Bitcoin Depot has noted it has continued to grow despite the bearish trend.

According to Chief Executive of Bitcoin Depot, Brandon Mintz, the firm made record sales and earnings in the second quarter. Mitz highlighted an increase in the use of cryptocurrency for cross-border payment and purchase of physical items as the reason for this.

Gus Garcia, the SPAC’s co-CEO noted his confidence in Bitcoin Depot’s financing options, citing the company’s steady growth.

What Is It about Bitcoin ATMs?

Unlike regular ATMs, Bitcoin ATMs allow users to buy different cryptocurrencies, usually by scanning a QR code. Using Bitcoin ATMs, users can access cryptocurrency even without a credit card or bank account. They can also complete quick transactions at stores or stations using digital currencies.

From 6000 ATMs in 2019, Coin ATM radar suggests there are about 40,000 bitcoin ATMs globally. Many of these are in the United States. The adoption has continued despite concerns that they can be used to facilitate crimes.

Last year, the Federal Bureau of Investigation issued a warning about the potential use of Bitcoin ATMs in scams. Also, crypto-friendly hub, Singapore banned the use of Bitcoin ATMs in the country earlier in the year. There are also concerns that Bitcoin ATM transactions are costly and may be used to prey on poor people.

However, Mr. Mintz has reiterated the firm’s commitment to working with the Treasury Department’s Financial Crimes Enforcement Network. He noted the firm already has a compliance system in place and sometimes requires extra documentation depending on transaction size.

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Babafemi Adebajo

An experienced writer with practical experience in the fintech industry. When not writing, he spends his time reading, researching or teaching.

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