GSR II METEORA A(GSRM) - 2024 Q2 - Quarterly Report

Operations and Locations - As of June 30, 2024, Bitcoin Depot operates approximately 8,068 Bitcoin ATMs (BTMs) across North America, with 7,441 retail locations accepting the BDCheckout product[259]. - Bitcoin Depot's largest BTM deployment is with Circle K, with approximately 1,200 BTMs installed in their stores as of June 30, 2024[261]. - The number of BDCheckout locations increased to 7,441 as of June 30, 2024, compared to 5,195 in the same period of 2023[270]. - The company activated approximately 1,000 additional kiosks during the three months ended June 30, 2024, following the reinstallation of kiosks in early 2024[289]. - The company had no open purchase orders for kiosks as of June 30, 2024[346]. Financial Performance - Revenue for the six months ended June 30, 2024, was $301.6 million, representing an 8.2% decline compared to$ 361.1 million for the same period in 2023, despite Bitcoin's market price increasing by 105%[262]. - Revenue decreased by $34.4 million, or 17.4%, for the three months ended June 30, 2024, compared to the same period in 2023, primarily due to decreases in kiosk transaction revenue[289]. - Revenue decreased by$ 59.5 million, or 16.5%, for the six months ended June 30, 2024, compared to the same period in 2023, primarily due to a decrease in kiosk transaction revenue[304]. - The company reported revenue of $163.1 million for the three months ended June 30, 2024, down from$ 197.5 million in the same period of 2023[331]. - Adjusted Gross Profit for the six months ended June 30, 2024, was approximately $43.6 million, compared to$ 52.5 million for the same period in 2023[331]. - Adjusted EBITDA for the three months ended June 30, 2024, was $12.7 million, compared to$ 19.8 million in the same period of 2023[335]. Transaction Metrics - The median kiosk transaction size increased to $230 for the three months ended June 30, 2024, up from$ 200 in the same period of 2023[270]. - The average returning user transaction count decreased to 7.1 for the twelve months ending June 30, 2024, down from 9.2 in the same period of 2023[272]. - Approximately 99.9% of total transaction volume was attributable to Bitcoin transactions, which accounted for 100% of transaction volumes as of the report date[326]. Revenue and Cost Changes - Kiosk transaction revenue decreased by $34.6 million, or 17.6%, for the three months ended June 30, 2024, attributed to a decrease in the number of users and transaction volume, with California's daily transaction limits accounting for approximately 50% of the revenue decline[291]. - Cost of revenue (excluding depreciation and amortization) decreased by$ 30.5 million, or 18.3%, for the three months ended June 30, 2024, primarily due to a decrease in transaction volume and regulatory changes in California[295]. - Cryptocurrency expenses decreased by $31.4 million, or 20.5%, for the three months ended June 30, 2024, compared to the same period in 2023, mainly due to lower transaction volume[297]. - Selling, general and administrative expenses increased by$ 2.4 million, or 8.8%, for the six months ended June 30, 2024, driven by higher payroll costs from an increase in headcount from 105 to 136[319]. - Total operating expenses increased by $2.0 million, or 6.0%, for the six months ended June 30, 2024, compared to the same period in 2023[303]. Income and Net Profit - Income from operations was$ 7.6 million for the three months ended June 30, 2024, down $2.9 million, or 28.0%, from$ 10.6 million in the same period in 2023[288]. - Net income for the three months ended June 30, 2024, was $4.4 million, compared to a net loss of$ 4.0 million in the same period in 2023, representing an increase of $8.4 million[288]. - Net income for the six months ended June 30, 2024, was$ 122, a decrease of $1,953, or 94.1%, compared to the same period in 2023[303]. - Net income attributable to Bitcoin Depot Inc. showed a loss during the six months ended June 30, 2024, due to losses allocated under the HLBV methodology and direct legal expenses[323]. Cash Flow and Financing - For the six months ended June 30, 2024, cash provided by operating activities was$ 11.475 million, a decrease of $15.124 million compared to$ 26.599 million in the same period of 2023[342]. - Net cash used in investing activities was $3.190 million for the six months ended June 30, 2024, a decrease of$ 3.172 million compared to $18 million in the same period of 2023[344]. - Net cash provided by financing activities increased by$ 42.6 million for the six months ended June 30, 2024, compared to the same period in 2023, primarily due to a $20.4 million increase in proceeds from notes payable[345]. - The company refinanced$ 20.8 million of its credit agreement with an annual interest rate of 17%, requiring monthly interest payments and fixed principal payments every six months[337]. - On March 26, 2024, the company amended its credit agreement to provide an additional $15.7 million in principal financing, increasing the total term loan facility to$ 35.6 million[340]. Regulatory and Market Risks - New regulations in California, effective July 1, 2025, impose a daily limit of $1,000 on transactions at crypto kiosks, which may negatively impact revenue in the state[266]. - The company is exposed to market risk from changes in foreign currency exchange rates and interest rates, managed through normal operating and financing activities[361]. - The company is assessing the impacts of recently issued accounting standards on its consolidated financial statements, including ASU 2023-06 and ASU 2023-07[357][358]. - The company believes that adequate provisions for resolution of all contingencies, claims, and pending litigation have been made for probable losses that are reasonably estimable[351].