Crypto ATM installs have seen a steady decline around the world for the past few months. While some ATMs have stopped working due to geopolitical tensions and declining revenue, some providers like Bitcoin Depot have begun converting their physical Bitcoin (BTC) ATMs to software.
Bitcoin Depot recently converted all of its 7,000 ATMs and crypto kiosks 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. Months before the deal, Bitcoin Depot had revealed plans to go public in 2023 through an $885 million deal with a special purpose acquisition company (SPAC).
Software conversion of crypto ATMs, which vertically integrate Bitcoin Depot hardware and software, eliminates annual software license fees. Previously, the fees represented $3 million in annual operating costs.
In the first half of 2022, BitAcess enjoyed the market leading position. However, since July 2022, the company has seen a steady decline in total ATM installs, confirms data from Coin ATM Radar.
As shown in the chart above, BitAccess is currently in the third position after Genesis Bytes and Genesis Coin, both of which have increased their market share in the same timeline. Explaining the reason behind the move, Bitcoin Depot’s VP of BTM Operations Jason Sacco stated:
“By swapping out the existing hard drive with one preloaded with Bitaccess software, we quickly completed the software conversion and avoided certain technical issues that can occur in field conversion projects.”
Sacco also revealed that Bitcoin Depot’s first 6,000 Bitcoin ATMs were converted to software in 10 weeks. The rise of crypto ATMs is directly proportional to the amount of crypto exposure to the general public.
When El Salvador opted for Bitcoin as legal tender, President Nayib Bukele announced that the country will build a support infrastructure of 200 ATMs and 50 branches.
Related: Australia Overtakes El Salvador to Become 4th Largest Crypto ATM Hub
The UK financial regulator, the Financial Conduct Authority (FCA), recently announced that all crypto ATMs operating in the UK are unregistered and illegal.
At the time, FCA Chief Enforcement Officer Mark Steward shared the intention to disrupt unregistered crypto businesses in the country.
