Bitcoin Depot, a leading provider of physical Bitcoin ATMs and kiosks, has announced the successful conversion of all of its 7,000 crypto ATMs to a software-based offering powered by BitAccess. The software conversion push came after Bitcoin Depot acquired a majority stake in BitAccess in November 2022. With this strategic move, Bitcoin Depot aims to increase its market share and reduce operating costs while addressing the trend. to the downside in the crypto ATM market.

The decision to convert physical crypto ATMs to software-based offerings is a response to several challenges facing the industry. On the one hand, geopolitical tensions and declining revenue have forced some ATM providers to shut down their operations, reducing the total number of crypto ATMs around the world. In addition, the high cost of annual software license fees has become a burden for ATM operators, especially in a market with declining demand.

By vertically integrating its hardware and software, Bitcoin Depot’s software-based offering eliminates the need for annual software license fees, which previously accounted for $3 million in annual operating costs. The software-based offering is expected to be more efficient and cost-effective, making it an attractive option for ATM operators and customers alike.

Bitcoin Depot’s switch to software-based offerings comes at a time when the crypto ATM market has seen a decline in installs since July 2022, according to data from Coin ATM Radar. The decline is likely due to several factors, including increased regulatory scrutiny, competition from online trading platforms, and the ongoing effects of the COVID-19 pandemic. Despite these challenges, Bitcoin Depot remains committed to expanding its reach and providing reliable, convenient, and secure access to cryptocurrency.

In addition to its software conversion unit, Bitcoin Depot has also revealed plans to go public in 2023 through an $885 million deal with a special purpose acquisition firm. This move is expected to provide additional funding and support for the company’s growth and expansion efforts.

In conclusion, Bitcoin Depot’s conversion from its physical crypto ATMs to software-based offerings is a significant step towards reducing operational costs and increasing efficiencies in the crypto ATM market. By vertically integrating its hardware and software, Bitcoin Depot is well positioned to capitalize on the growing demand for cryptocurrency and provide innovative solutions for ATM operators and customers alike.