Business Operations and Market Presence - Bitcoin Depot operates approximately 6,300 kiosks across 48 U.S. states and 10 Canadian provinces, covering 52% of the U.S. population[17] - The company has a 23% market share in the U.S. and 11% in Canada for Bitcoin ATMs (BTMs) as of December 31, 2023[30] - Bitcoin Depot installed approximately 1,300 BTMs in Circle K stores, its largest retail partner, as of December 31, 2023[18] - The company's BDCheckout product provides access to Bitcoin purchases at thousands of additional retailer locations without requiring kiosks[25] - BDCheckout is available at approximately 5,700 retail locations across North America as of December 31, 2023[44] - The company signed a master placement agreement with EG America LLC to install BTMs in approximately 900+ locations[47] - The company plans to expand into New York, estimating the market could support thousands of kiosks[41] - Approximately 92% of BTMs worldwide are in North America, presenting significant international expansion opportunities[41] Financial Performance - The company generated 88.6 million in gross profit (12.9% gross profit margin) for the year ended December 31, 2023[16] - Bitcoin Depot's Adjusted EBITDA for 2023 was 689.0 million, with gross profit of 101.0 million[42] - Circle K represents approximately 27% of total revenues for 2023, with contracts having a weighted average remaining life of 1.5 years[55] - The company's consolidated financial statements for the years ended December 31, 2023, and December 31, 2022, were audited and found to be in conformity with U.S. GAAP[409] Transaction and User Data - Bitcoin Depot completed over 3.3 million user transactions totaling approximately 0.5 million for the year ended December 31, 2023[58] Currency and Market Risks - Currency exchange rate fluctuations had an insignificant impact on the company's consolidated revenues for the years ended December 31, 2023, and December 31, 2022[403] - The company's transaction gains and losses due to currency fluctuations were insignificant for the years ended December 31, 2023, and December 31, 2022[404] - The company's foreign currency translation adjustments are recorded as a component of other comprehensive income and included in stockholders' equity[405] - The company may hedge its foreign currency exposure in the future, although it has not historically done so[403] - The company's market risk disclosures provide forward-looking indicators of potential exposure to cryptocurrency price and interest rate fluctuations, though they are not precise predictors of future losses[402] Operational and Financial Risks - The cost of new kiosks can be significantly impacted by inflation, supply constraints, and labor shortages, potentially leading to higher prices than the company's fair value estimates[407] - The company holds typically less than $1 million in Bitcoin at any given time due to high transaction volumes and does not store Bitcoin in cold wallets[63] - The company has experienced seasonality in the 4th quarter of the calendar year in revenue and related cost of cryptocurrency, attributed to fewer business days due to public holidays[68] Corporate Structure and Employees - As of December 31, 2023, the company had 124 full-time employees, most of whom were in the U.S.[64] - The company's principal executive offices and headquarters are located in leased premises consisting of approximately 5,700 square feet in Atlanta, Georgia[67] Contracts and Partnerships - The company's contracts with its top 10 retail partners had a weighted average remaining life of 1.7 years as of December 31, 2023[21] - Circle K represents approximately 27% of total revenues for 2023, with contracts having a weighted average remaining life of 1.5 years[55]
Bitcoin Depot (BTM) - 2023 Q4 - Annual Report