Bitcoin Halving Drives Rapid Increase in Installations

Blocks forming bitcoins

The global deployment of Bitcoin ATMs is witnessing a significant uptick post the Bitcoin halving, as forecasted by the CEO of a leading Bitcoin ATM operator. Brandon Mintz, CEO of Bitcoin Depot, predicts a worldwide surge in installations, attributing this trend to the usual spike in crypto FOMO (fear of missing out) that accompanies the Bitcoin halving period.

Anticipated Industry Rebound

In 2023, for the first time in nearly a decade, there was a notable decline in annual cryptocurrency ATM installations, primarily attributed to a bear market triggered by the failures of crypto companies. However, the narrative took a complete turn in 2024; in the first three months, the number of newly installed crypto ATMs reached 1,469, surpassing the 3,000 removed by the same time in 2023.

Brandon Mintz anticipates a broader resurgence in the ATM industry due to Bitcoin’s resurgence, expected to surpass its previous peak of $20,000 in March. He emphasizes the typical pattern of bull markets, wherein cryptocurrency adoption grows steadily before entering a phase of FOMO, marked by a surge in visitors and subsequently in the use of Bitcoin ATMs

Despite the recent surge in ATM installations, Mintz points out a concerning trend: a nearly 30% drop in the ATM operator termination rate over the last six months. The collapse of a major player, Coin Cloud, with 5000 ATMs, in February 2023, exacerbated the industry’s challenges due to market value fluctuations and crypto exchange blockages.

Bitcoin Depot’s growth trajectory

Bitcoin Depot revealed its performance for the fourth quarter and full year of 2023. The company reported a 7% increase in revenues compared to 2022, reaching $689 million. However, net income decreased by 54% from 2022 levels, totaling $1.6 million. As of Q1 2024, the company has installed 900 ATMs across 24 U.S. states, mainly in convenience stores, with plans to acquire nearly 940 more.

Data from CoinATMRadar shows that Bitcoin Depot is among the leading operators in the market, with Coinflip in second place, operating over 4,200 ATMs, and Bitstop in third place, serving almost 2,500. The United States currently hosts the largest share of ATMs, accounting for about 83%, indicating potential future growth.

The January agreement to trade basket Bitcoin ETFs in the US has sparked debates about their potential impact on Bitcoin ATM usage. However, Mintz doesn’t see ETFs as a threat: “Customers who buy Bitcoin ETFs are usually similar to price-conscious customers of crypto ATMs, so they are unlikely to exclusively opt for the more convenient ETF option.” He believes ETFs could drive Bitcoin investment penetration as more market players join the trend, potentially leading to higher ATM usage rates.

Author: Simeon

Simeon is a seasoned crypto writer with a passion for exploring the fascinating world of blockchain and digital currencies. With a background in finance and technology, Simeon brings a unique perspective to his writing, delving into the complexities of decentralized finance, cryptocurrency trading, and emerging blockchain projects.