Bitcoin Depot converts BTC ATMs to software to reduce operating costs

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The number of Crypto ATM installations has been steadily declining around the world over the past few months. While some ATMs have ceased operations due to geopolitical tensions and declining revenues, some providers such as Bitcoin Depot have begun converting physical Bitcoin (BTC) ATMs into software. .

Bitcoin Depot recently switched all 7,000 crypto ATMs and kiosks to a software-based service powered by BitAccess. The software conversion move comes after Bitcoin Depot acquired a majority stake in his BitAccess in November 2022. Months before the deal, Bitcoin Depot had revealed plans to go public in 2023 through his $885 million deal with a special purpose acquisition company (SPAC).

A software transformation of a crypto ATM that vertically integrates Bitcoin Depot’s hardware and software, eliminating annual software license fees. This fee previously accounted for $3 million in annual operating costs.

Growth of Crypto ATMs by Manufacturers.Source: Coin ATM Radar

In the first half of 2022, BitAcess enjoyed a market leader position. However, since July 2022, we have seen a consistent decline in the number of ATM installations. data From coin ATM radar.

As shown in the graph above, BitAccess has now fallen to third place behind Genesis Bytes and Genesis Coin, both of which have increased their market share over the same timeline. Explaining the motivation behind the move, Jason Sacco, his Vice President of BTM Operations at Bitcoin Depot, said:

“By replacing the existing hard drive with a hard drive preloaded with Bitaccess software, we completed the software conversion quickly while avoiding certain technical issues that can arise in field conversion projects. .”

Sacco also revealed that Bitcoin Depot’s first 6,000 Bitcoin ATMs were converted to software in 10 weeks. The increase in crypto ATMs is directly proportional to the amount of crypto exposure of the general public.

When El Salvador opted for Bitcoin as its legal tender, President Naive Bukele announced that the country would build a supporting infrastructure of 200 ATMs and 50 branches.

Related: Australia overtakes El Salvador to become 4th largest cryptocurrency ATM hub

The UK’s financial regulator, the Financial Conduct Authority (FCA), recently announced that all cryptocurrency ATMs operating in the UK are unregistered and illegal.

At the time, FCA’s chief of operations, Mark Steward, shared the intent to disrupt unregistered crypto businesses in the country.