The crypto ATM software conversion that vertically integrates Bitcoin Depot’s hardware and software eliminates annual software licensing fees.
The number of crypto ATM installations has been steadily declining worldwide over the past few months. While some ATMs have ceased operations due to geopolitical tensions and declining revenues, some vendors such as Bitcoin Depot have begun converting their physical
Bitcoin ATMs to Software. Bitcoin Depot recently converted all of its 7,000 crypto ATMs and kiosks to software-based products powered by BitAccess. The software conversion drive comes after Bitcoin Depot acquired a majority stake in BitAccess in November 2022. Months before the deal, Bitcoin Depot revealed plans to go public in 2023 via an $885 million deal with a special purpose acquisition company (SPAC).
The crypto ATM software conversion, which vertically integrates Bitcoin Depot’s hardware and software, eliminated annual software licensing fees, which previously accounted for $3 million of annual operating costs.
BitAcess enjoyed market leadership in the first half of 2022. However, data from Coin ATM Radar confirms that the company’s total ATM installations have continued to decline since July 2022.
As shown in the above chart, BitAccess is currently ranked third, 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, VP of BTM Operations at Bitcoin Depot, said:
“By replacing the existing hard drives with ones pre-installed with the Bitaccess software, we were able to quickly complete the software conversion while avoiding some of the technical issues that can occur in an on-site conversion project.”
Sacco also revealed that Bitcoin Depot’s first 6,000 Bitcoin ATMs were converted to software in a 10-week period. The increase in crypto ATMs is directly proportional to the amount of public exposure to crypto.
When El Salvador chose Bitcoin as its legal tender, President Nayib Bukele announced that the country would build a supporting infrastructure consisting of 200 ATMs and 50 branches.
Related: Australia surpasses El Salvador to become fourth-largest crypto ATM hub
The Financial Conduct Authority (FCA), the UK’s financial regulator, recently announced that all crypto ATMs operating in the UK are unregistered and illegal.
At the time, the FCA’s executive director of enforcement, Mark Steward, expressed an interest in disrupting unregistered crypto businesses in the country.
