ATLANTA - Bitcoin Depot (NASDAQ: BTM), an American Bitcoin ATM operator, has announced its plan to expand its services to Australia by shipping 125 Bitcoin kiosks to the country in the second quarter of 2024. The fintech company will target major metropolitan areas such as Sydney, Melbourne, and Brisbane, following its recent expansion into Puerto Rico in March.
The move is seen as a strategic step into an "untapped market with significant growth potential and lower competition," according to Bitcoin Depot's CEO, Brandon Mintz. With approximately 950 Bitcoin ATMs currently operated by only 10 providers in Australia, Bitcoin Depot aims to capitalize on the market opportunity and the country's population of about 27 million people.
Bitcoin Depot's kiosks provide a straightforward process for converting cash into Bitcoin, facilitating access to digital financial services, including payments, transfers, remittances, online purchases, and investments. The company's expansion into Australia is part of its broader strategy to increase its global presence and offer cryptocurrency access in retail locations.
This announcement comes as the company continues to build momentum, having recently surpassed its goal of deploying 8,000 Bitcoin ATMs and becoming the largest BTM operator in North America. Despite market fluctuations, Bitcoin Depot went public on a major U.S. stock exchange in 2023 and received recognition in Forbes 30 Under 30 and Deloitte's 2023 Technology Fast 500.
The company's founder, Brandon Mintz, expressed his enthusiasm for the geographic expansion, emphasizing his vision of making cryptocurrency accessible to everyone. The expansion to Australia is expected to enhance the company's service offerings and convenience in retail locations.
Bitcoin Depot was established in 2016 with the mission to bridge the gap between cash usage and digital financial systems. The company boasts a significant market share in North America with around 7,400 kiosk locations as of April 1, 2024.
This information is based on a press release statement.
InvestingPro Insights
As Bitcoin Depot (NASDAQ: BTM) gears up to extend its reach to Australia, the latest metrics from InvestingPro paint a mixed financial picture for the company. With a market capitalization of $98.58 million, the company is trading at a low revenue valuation multiple, which may indicate an undervalued stock in the market. This could potentially be an attractive entry point for investors eyeing expansion potential in the cryptocurrency ATM sector.
Despite the recent announcement of international growth, the stock has experienced significant volatility with a one-week price total return showing a drop of -9.76%. This highlights the high price volatility that the stock generally trades with, as noted in one of the InvestingPro Tips. Moreover, the price has seen a substantial decline of -83.53% over the last year, underscoring the challenges and investor sentiment in the broader cryptocurrency market.
Nevertheless, Bitcoin Depot has shown resilience with a reported revenue growth of 6.51% over the last twelve months as of Q4 2023, suggesting some underlying business strengths amidst a challenging environment. Investors interested in Bitcoin Depot's financial health and future prospects can find more insights and tips, including an analysis of the company's moderate level of debt and the forecast for net income growth this year, on InvestingPro. There are over 10 additional InvestingPro Tips available, which can be accessed by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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