Bitcoin Depot updates software in its ATMs to cut expenses

Bitcoin Depot has just migrated all 7,000 cryptocurrency ATMs and kiosks to a software-based service that BitAccess powers. After bitcoin Depot’s acquired a majority ownership stake in BitAccess in November 2022, the software conversion effort was initiated. 

The yearly software license costs were eliminated as a result of the software conversion of the cryptocurrency ATMs, which enabled vertical integration of bitcoin Depot’s hardware and software.

Bitcoin Depot announced its intention to go public in 2023 through a transaction with a special-purpose acquisition firm worth $885 million months before the agreement was made.

Over the previous several months, there has been a general trend toward fewer new crypto ATM installations all around the globe. While some ATMs have been taken down due to geopolitical tensions and reduced income, providers like bitcoin Depot have begun transitioning their physical bitcoin ATMs to software.

The yearly software license costs were eliminated as a result of the software conversion of the cryptocurrency ATMs, which enabled vertical integration of bitcoin Depot’s hardware and software. In the past, the fees were responsible for $3 million worth of yearly running expenditures.

BitAcess established itself as the industry standard throughout the first half of 2022. However, according to the information provided by Coin ATM Radar, the number of total ATM installations at the company’s locations has been steadily decreasing since July 2022.

As shown in the graph above, BitAccess has recently dropped to third place, behind Genesis Bytes and Genesis Coin, both of which have seen a rise in their market share over the same period. 

How is the crypto ATMs idea getting treated so far

Bitcoin Depot’s vice president of BTM operations, Jason Sacco, provided the following statement when asked to explain the rationale for the move:

Sacco also said that the software for the first 6,000 bitcoin ATMs owned by bitcoin Depot was upgraded in ten weeks. The growth in the number of cryptocurrency ATMs is directly proportionate to the amount of exposure the general population is getting to cryptocurrency.

When El Salvador decided to adopt bitcoin as legal cash, President Nayib Bukele announced that the nation would construct a supporting infrastructure consisting of 200 automated teller machines and 50 branches to facilitate the use of Bitcoin.

The Financial Conduct Authority (FCA), which is responsible for regulating financial activities in the United Kingdom, has made the announcement that all cryptocurrency automated teller machines (ATMs) functioning in the country are operating illegally and are not registered.

Mark Steward, the executive director of enforcement for the FCA at the time, said that the agency planned to interfere with unregistered cryptocurrency operations in the nation.