BitcoinDepot, identified by the ticker BTM, has recently streamlined its organizational and capital framework by removing its Up-C Restructuring. This strategic move involved merging BT Assets, overseen by the company's Founder and CEO Brandon Mintz, with a subsidiary. The merger resulted in BT Assets receiving 41,193,024 shares of Class M common stock, which maintain a voting power of ten votes per share. Subsequently, the company's Class V Common Stock held by BT Assets was canceled and transferred back to the company.
Following this restructuring, Mintz controls 41,193,024 shares of Class M Common Stock and 142,973 shares of Class A Common Stock. As a result, BitcoinDepot now wholly owns its main operating subsidiaries. This simplified structure is expected to enhance stock liquidity, facilitate acquisitions, and provide a clearer corporate image.
The restructuring also eliminates a $2.2 million Tax Receivable Agreement liability, contributing to long-term financial benefits. BitcoinDepot anticipates a 12 percentage point reduction in its cash tax rate and expects savings on professional services expenses related to tax, accounting, and legal matters.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Bitcoin Depot Inc (BTM, Financial) is $5.17 with a high estimate of $5.50 and a low estimate of $5.00. The average target implies an upside of 38.15% from the current price of $3.74. More detailed estimate data can be found on the Bitcoin Depot Inc (BTM) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Bitcoin Depot Inc's (BTM, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
BTM Key Business Developments
Release Date: May 15, 2025
- Revenue: $164.2 million, up 19% year-over-year.
- Net Income: $12.2 million, compared to a net loss of $4.2 million in the previous year.
- Adjusted Gross Margin: Increased 92% to $33.1 million; margin increased to 20.2% from 12.5%.
- Adjusted EBITDA: $20.3 million, up 315% from $4.9 million in the previous year.
- Cash and Cash Equivalents: $43.3 million as of March 31, 2025.
- Operating Expenses: Declined 7% to $15.3 million.
- Cash from Operating Activities: $16.3 million, up from $1.3 million in the previous year.
- Active Machines: Approximately 8,483 kiosks.
- Bitcoin Holdings: 94.4 BTC valued at approximately $7.8 million.
- Debt: $60 million, with a $6 million paydown during the quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Bitcoin Depot Inc (BTM, Financial) reported a 19% year-over-year revenue growth for Q1 2025, reaching $164.2 million.
- The company achieved a record net income of $12.2 million, a significant improvement from a net loss in the previous year.
- Adjusted EBITDA increased by 315% to $20.3 million, driven by revenue outperformance and margin expansion.
- The company successfully expanded its kiosk network, ending Q1 with approximately 8,483 active machines.
- Bitcoin Depot Inc (BTM) is pursuing international expansion, with over 100 kiosks deployed in Australia and plans to enter additional countries in 2025.
Negative Points
- The company faces regulatory challenges, particularly in New York State, where it is still seeking a license to operate.
- Revenue growth is expected to decelerate in Q2 2025, with projections in the low to mid-single digits.
- California remains a challenging market due to regulatory changes, leading to a significant reduction in kiosk numbers in the state.
- The company has not announced a definitive timeline for further kiosk installations, indicating potential delays in expansion.
- Bitcoin Depot Inc (BTM) faces a highly fragmented market, which may impact its ability to maintain market share.
