Cryptocurrency

Bitcoin Depot converts BTC ATMs software to reduce operating costs

Crypto ATM installations have seen a steady decline across the world over the past several months. While some ATMs have been taken out of operation due to geopolitical tensions and revenue decline, providers like Bitcoin Depot have started converting their physical Bitcoin (BTC) ATMs to software. 

Bitcoin Depot recently converted all of its 7,000 crypto ATMs and kiosks to a software-based offering powered by BitAccess. The software conversion drive came after Bitcoin Depot acquired majority equity in BitAccess in November 2022. Months before the deal, Bitcoin Depot had revealed plans to go public in 2023 via an $885 million deal with a special-purpose acquisition company.

The software conversion of the crypto ATMs, which vertically integrates Bitcoin Depot’s hardware and software, eliminates annual software licensing fees. The fees previously accounted for $3 million in annual operational costs.

In the first half of 2022, BitAcess became a market leader. However, since July 2022, the company has seen a consistent decline in total ATM installations, confirms data from Coin ATM Radar.

As shown in the above graph, BitAccess is currently down to third position after Genesis Bytes and Genesis Coin, both of whom have increased their market share in the same timeline. Explaining the motive behind the move, Bitcoin Depot’s vice president 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 while avoiding certain technical issues that can happen in field conversion projects.”

Sacco also revealed that the first 6,000 of Bitcoin Depot’s Bitcoin ATMs were software converted in 10 weeks. The increase in crypto ATMs is directly proportional to the amount of crypto exposure for the general public.

When El Salvador opted for Bitcoin as a legal tender, President Nayib Bukele announced the country would build a supporting infrastructure of 200 ATMs and 50 branches.

Related: Australia overtakes El Salvador to become 4th largest crypto ATM hub

The United Kingdom’s financial regulator, the Financial Conduct Authority (FCA), recently announced that all crypto ATMs operating in the U.K. are unregistered and illegal.

At the time, FCA’s executive director of enforcement Mark Steward shared the intention to disrupt unregistered crypto businesses in the country.

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