Bitcoin Depot (BTM) AI Stock Analysis

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Bitcoin Depot

(NASDAQ:BTM)

49Neutral

Bitcoin Depot's overall stock score reflects significant financial challenges, with declining revenues and negative equity presenting substantial risks. While there are positive signs in technical indicators and strategic expansion efforts, ongoing regulatory hurdles and negative valuation metrics weigh heavily on the score.

Positive Factors

Financial Guidance

Management introduced total revenue and adjusted EBITDA guidance that were above estimates, indicating positive growth prospects.

Fleet Optimization

BTM made significant strides in relocating underperforming kiosks to optimize fleet profitability, positioning the company well for positive revenue growth.

Negative Factors

Market Perception

The market does not fully appreciate BTM's return to growth, which might impact investor confidence.

Regulatory Concerns

Regulatory concerns have kept some investors on the sidelines, affecting the stock's potential growth.

Bitcoin Depot (BTM) vs. S&P 500 (SPY)

Market Cap

$72.89M

Dividend YieldN/A

Average Volume (3M)335.43K

Price to Earnings (P/E)―

Beta (1Y)0.33

Revenue Growth9.20%

EPS Growth26.31%

CountryUS

Employees126

SectorFinancial

Sector Strength79

IndustryFinancial - Capital Markets

Share Statistics

EPS (TTM)-0.59

Shares Outstanding21,670,568

10 Day Avg. Volume238,854

30 Day Avg. Volume335,426

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.14

Price to Cash Flow (P/CF)3.60

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$5.23

Price Target Upside335.83% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering3

Bitcoin Depot Business Overview & Revenue Model

Company DescriptionBitcoin Depot Inc. owns and operates a network of cryptocurrency kiosks in North America. It provides users to buy and sell bitcoin, litecoin, and ethereum cryptocurrencies; and engages in the sale of cryptocurrency to consumers at a network of retail locations through its BDCheckout product offering and through its website over the counter trade. The company was founded in 2016 and is headquartered in Atlanta, Georgia. Bitcoin Depot Inc. is a subsidiary of BT Assets, Inc.

How the Company Makes MoneyBitcoin Depot makes money primarily through transaction fees charged on the conversion of cash to cryptocurrency at its ATMs. Each transaction incurs a fee, which is a percentage of the transaction amount, providing a steady revenue stream. Additionally, the company may benefit from partnerships with retailers and businesses hosting its ATMs, potentially involving shared revenue models or placement fees. The company's growth is further supported by the increasing adoption of cryptocurrencies and the expansion of its ATM network, which enhances its reach and customer base.

Bitcoin Depot Financial Statement Overview

Summary

Bitcoin Depot faces significant financial challenges, with declining revenues, negative equity, and reduced cash flow from operations. Despite narrowing net losses, the persistent negative income and liabilities exceeding assets pose substantial risks.

Income Statement

Neutral

Bitcoin Depot has experienced a decline in revenue from 2023 to 2024, with a decrease in total revenue from $688.97M to $573.70M, marking a negative revenue growth rate. The gross profit margin decreased slightly from 14.67% to 15.93%, while the net profit margin improved from -3.79% to -2.04%, indicating a reduction in net losses. However, the company still reports a negative net income, and both EBIT and EBITDA margins decreased due to lower operating performance.

Balance Sheet

Negative

The balance sheet shows significant challenges, with a negative stockholders' equity at -$16.49M in 2024, indicating insolvency risk. The company's debt-to-equity ratio is not meaningful due to negative equity, but total debt increased to $63.51M. These factors, combined with deteriorating equity position, underscore financial instability.

Cash Flow

Neutral

Bitcoin Depot's operating cash flow decreased in 2024 to $22.54M from $41.10M in the previous year, indicating pressure on cash generation. The free cash flow remains positive, but the decline in cash flow from operations suggests potential issues in sustaining cash generation. The operating cash flow to net income ratio shows some improvement as the net loss narrowed.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
573.70M	688.97M	646.83M	548.98M	245.13M
	Gross Profit
91.44M	101.03M	72.30M	56.03M	31.09M
	EBIT
24.21M	30.47M	16.52M	13.85M	14.81M
	EBITDA
-17.95M	26.23M	35.12M	26.79M	17.38M
	Net Income Common Stockholders
-11.69M	-26.10M	3.98M	5.94M	14.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	29.76M	38.08M	38.03M	41.15M
	Total Assets
0.00	77.38M	93.40M	108.33M	53.06M
	Total Debt
63.51M	31.33M	62.62M	69.31M	29.38M
	Net Debt
63.51M	1.57M	25.08M	31.28M	-11.77M
	Total Liabilities
96.59M	68.00M	83.96M	89.35M	33.76M
	Stockholders Equity
-16.49M	-15.81M	7.21M	17.54M	19.30M
Cash Flow		Free Cash Flow
22.54M	41.08M	30.14M	15.35M	16.90M
	Operating Cash Flow
22.54M	41.10M	31.25M	23.28M	18.28M
	Investing Cash Flow
-11.37M	-22.00K	-3.11M	-19.32M	-1.38M
	Financing Cash Flow
-11.58M	-48.86M	-28.54M	-7.02M	17.66M

Bitcoin Depot Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.20

Price Trends

50DMA

1.37

Negative

100DMA

1.59

Negative

200DMA

1.60

Negative

Market Momentum

MACD

0.04

Negative

RSI

51.09

Neutral

STOCH

38.16

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BTM, the sentiment is Negative. The current price of 1.2 is below the 20-day moving average (MA) of 1.39, below the 50-day MA of 1.37, and below the 200-day MA of 1.60, indicating a bearish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 38.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BTM.

Bitcoin Depot Risk Analysis

Bitcoin Depot disclosed 83 risk factors in its most recent earnings report. Bitcoin Depot reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Bitcoin Depot Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COIN	68 Neutral	$39.93B	15.96	31.13%	―	132.55%	2681.72%
Sector *	64 Neutral	$13.44B	9.41	9.19%	4.92%	16.30%	-8.66%
RIOT	63 Neutral	$2.49B	18.99	4.35%	―	34.20%	―
MARA	55 Neutral	$3.89B	7.67	18.84%	―	69.38%	30.30%
BTM	49 Neutral	$72.89M	―	77.58%	―	9.20%	26.31%
HUT	49 Neutral	C$1.69B	3.39	2.56%	―	199.41%	―

* Financial Sector Average

Performance Comparison

BTM

Bitcoin Depot

1.17

-0.56

-32.37%

RIOT

Riot Platforms

7.38

-2.37

-24.31%

MARA

Marathon Digital Holdings

12.31

-5.29

-30.06%

HIVE

HIVE Digital Technologies

1.52

-1.48

-49.33%

TSE:HUT

Hut 8

17.79

6.71

60.56%

COIN

Coinbase Global

177.09

-85.92

-32.67%

Bitcoin Depot Earnings Call Summary

Earnings Call Date: Mar 18, 2025 | % Change Since: -13.67% | Next Earnings Date: May 20, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted significant improvements in adjusted EBITDA, gross profit, and strategic growth through kiosk expansion and international plans. However, challenges remain with revenue declines due to regulatory impacts and potential legislative headwinds. The company is managing cash flow and debt effectively, but regulatory challenges continue to affect operations.

Highlights

Significant Increase in Adjusted EBITDA

Adjusted EBITDA for Q4 2024 increased 34% to $12 million compared to $9 million for Q4 2023, driven by higher net income.

Expansion and Growth in Kiosk Network

Ended 2024 with approximately 8,457 active kiosks, surpassing goals and reflecting strong execution in enhancing Bitcoin accessibility.

Improved Gross Profit and Margin

Q4 adjusted gross profit increased 18% to $25.4 million, with gross margin up 400 basis points to 18.6% compared to the previous year.

International Expansion Plans

Shipped over 300 kiosks for launch in Australia in 2025, with plans to expand to additional countries, capitalizing on growing Bitcoin adoption.

Strong Cash Flow and Debt Management

Ended the year with $31 million in cash and cash equivalents, planning to pay down $9 million of term loan debt in 2025.

Lowlights

Revenue Decline Due to Regulatory Impact

Q4 2024 revenue was $136.8 million, down from $148.4 million in Q4 2023, impacted by unfavorable legislation in California and other states.

Regulatory Challenges in the US

Regulatory changes in states like California, Connecticut, Vermont, and Minnesota affected operations, with ongoing legal and compliance costs.

Potential Headwinds from New Legislation

Concerns over the Crypto ATM Fraud Prevention Act, though mitigated by a pro-crypto federal administration.

Company Guidance

In the fourth quarter and full year 2024 conference call, Bitcoin Depot Inc. provided detailed guidance on their financial and operational performance, highlighting several key metrics. The company reported a Q4 adjusted gross profit increase of 18% year-over-year to $25.4 million, with an adjusted EBITDA growth of 34% to $12 million. Despite a revenue decline to $136.8 million from $148.4 million due to unfavorable legislation in California and other states, they optimized their fleet, reducing operating expenses by 16% to $15 million. Bitcoin Depot ended 2024 with approximately 8,457 active kiosks and $31 million in cash and cash equivalents. For Q1 2025, they anticipate revenues between $151 million and $154 million, and adjusted EBITDA growth of over 200%. The company plans to expand its international presence, particularly in Australia, and is exploring additional countries for growth in 2025. They also expressed confidence in their cash flow generation and strategic initiatives, including potential dividends and debt reduction.

Bitcoin Depot Corporate Events

Executive/Board Changes

Bitcoin Depot Announces Upcoming Board Member Resignation

Neutral

Dec 12, 2024

Tim Vanderham, a member of Bitcoin Depot Inc.’s Board of Directors and Audit Committee, plans to resign in the first quarter of 2025. His departure is not due to any disagreement with the company, and the Board will appoint a qualified director to replace him on the Audit Committee following the company’s Annual Meeting.

Executive/Board Changes

Bitcoin Depot CFO Resigns; COO Steps In Temporarily

Neutral

Nov 18, 2024

Bitcoin Depot, Inc. announced the resignation of their CFO, Glen Leibowitz, effective November 15, 2024, due to personal reasons, with no disagreements or issues with the company. Scott Buchanan, the current COO, has been appointed as Acting CFO while retaining his COO role. The company is searching for a permanent CFO. Buchanan brings experience, having previously served as CFO and in other finance roles at Bitcoin Depot and Acuity Brands. His annual salary as Acting CFO will be $558,000.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.