Today Bitcoin Depot announced a Nasdaq listing by merging with GSR II Meteora Acquisition Corp, a SPAC with around $321 million in cash in a deal worth up to $885 million. Some have raised eyebrows over how anti-money laundering works with Bitcoin ATMs, which is pretty valid given our calculations show that the average user converts more than $2,000 of cash to crypto. But we were also curious about the business model and the absence of an explanation in the investor material.
Despite its name, Bitcoin Depot ATMs let users convert cash to multiple cryptocurrencies: Bitcoin, Ethereum or Litecoin. It has a deal with Circle K convenience stores which accounts for 20% of its transaction volumes.
Before we get into the unexplained business model, the first notable thing is that not all the $321 million in cash will go to Bitcoin Depot. Only up to $170 million goes to the company, with up to $122 million going to selling equity holders, which we assume are Bitcoin Depot stockholders. I would take the cash! If SPAC investors redeem some shares, the cash figures will be smaller.
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