Major United States cryptocurrency ATM provider Bitcoin Depot said today that it plans to go public via a merger with the special-purpose acquisition company GSR II Meteora Acquisition Corp.
The two companies reached a definitive agreement to merge in a deal valued at $885 million, an announcement revealed today. Upon closing the merger, expected by the first quarter of 2023, the combined company will be named Bitcoin Depot Inc. and will trade under the symbol “BTM” on Nasdaq.
Launched in 2016, Bitcoin Depot operates as a crypto financial technology company in the U.S. that provides quick access to cryptocurrencies. It supports a network of more than 7,000 kiosks in 47 U.S. states and nine Canadian Provinces where users can convert cash to bitcoin, Ethereum or Litecoin.
Bitcoin ATMs don’t operate like ordinary automated machines, since they don’t take bank cards and distribute cash. They are instead standalone touchscreens that allow customers to use their phones to exchange bank funds for cryptocurrencies using QR codes.
“Today marks an important milestone for Bitcoin Depot,” said Brandon Mintz, founder and chief executive of Bitcoin Depot. “We are always looking to expand our reach so as many people as possible can access cryptocurrency to control their own money and conduct easier and simpler financial transactions.”
The combined company’s post-enterprise value will be $755 million, raised to the estimated $855 million from a contribution of up to $170 million from the deal’s cash proceeds.
The GSR II Meterora SPAC reportedly has about $320 million held in a trust account that will be used to support Bitcoin Depot’s working capital, complete acquisitions and scale its platform. However, it is possible for SPAC investors to pull their money out before the merger, which could leave the resulting company with less money after the deal.
This deal is happening at a time in cryptocurrency markets dubbed the “crypto winter” during which prices have lost more than 70% of their value since all-time highs in November. Even so, the company says its revenue and network have continued to grow and its physical presence in stores has been a resilient opportunity for payment processing.
In its favor, Bitcoin Depot has pulled in $623 million in revenue over the past 12 months. Furthermore, the company said its transaction volumes are not “historically correlated to changes in cryptocurrency prices” and have reached approximately $1.2 billion since its launch in 2016.
Gus Garcia, co-CEO and director of GSR, said he’s confident in Bitcoin Depot’s capability to weather the bear market and grow its operations post-merger.
“With its significant BTM footprint, key strategic relationships and feature-rich mobile app, we believe Bitcoin Depot is well-positioned to take advantage of the highly fragmented BTM market both domestically and overseas,” Garcia said.
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