Is Bitcoin in trouble? Looks like BTC ATMs are.
The global network of operational Bitcoin ATMs has experienced a recent contraction, coinciding with a decline in Bitcoin prices. This reversal comes after ten consecutive months of growth in the number of machines available.
Over a 40-day period, a significant number, of 334 Bitcoin ATMs, were removed from the global network. The United States and Europe bore the brunt of this decrease, while interestingly, Australia and Spain witnessed an expansion in their Bitcoin ATM footprint.
This decline in ATMs could potentially be linked to a global crackdown by authorities aiming to curb financial crimes involving cryptocurrency.
However, despite this decrease and the drop in Bitcoin prices, Bitcoin Depot, the biggest ATM operator in the United States, revealed no correlation between cryptocurrency prices and their revenue. The company’s revenues in 2023 and 2022, $689 million and $647 million, respectively, have not been correlated to the price of Bitcoin, even in light of volatile Bitcoin prices.
For example, when Bitcoin surged 155% in 2023, Bitcoin Depot’s year-over-year revenue growth amounted to just 6%, the company stated. According to the ATM operator, the lack of correlation between Bitcoin Depot’s revenues and the BTC price comes partly from the nature of the services provided.
“Based on our own user surveys, a majority of our users use our products and services for non-speculative purposes, including money transfers, international remittances, and online purchases, among others,” Bitcoin Depot wrote.
While the overall accessibility of Bitcoin ATMs might be decreasing, established operators like Bitcoin Depot may be finding alternative revenue streams within the broader cryptocurrency market, catering to users with diverse needs beyond just speculative trading.
