Bitcoin Depot decided to transform the software of Bitcoin ATMs to reduce operating costs.
Vertically integrating Bitcoin Depot’s hardware and software, the software conversion of crypto ATMs eliminates annual software license fees. These fees previously amounted to $3 million in annual operational costs.
Crypto ATM Installations Have Dropped
Crypto ATM installations have seen a steady decline across the globe over the past few months. While some ATMs have been shut down due to geopolitical tensions and revenue decline, providers such as Bitcoin Depot have begun converting the software of physical Bitcoin ATMs.
Bitcoin Depot recently converted all of its 7,000 crypto ATMs and kiosks into a software-based offering powered by BitAccess. The software transformation move came after Bitcoin Depot acquired a majority stake in BitAccess in November 2022. Months before the deal, Bitcoin Depot announced its plan to go public in 2023, with a $885 million deal with a special-purpose acquisition company.
BitAccess, the market leader in the first half of 2022, has seen a consistent decline in ATM installations since July 2022. The company has now fallen to third position after Genesis Bytes and Genesis Coin, both of which have increased their market share on the same timeline. Commenting on the subject, Jason Sacco, vice president of BTM operations at Bitcoin Depot, said, “By replacing the existing hard drive with a drive preloaded with BitAccess software, we quickly completed the software conversion and avoided some of the technical issues that could occur with field conversion projects.”
Sacco also revealed that the first 6,000 of Bitcoin Depot’s Bitcoin ATMs were converted to software within 10 weeks.
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