Bitcoin Depot Inc. Stock Rises Sharply in 2025
Bitcoin Depot Inc. has experienced a remarkable surge in its stock price, soaring by 250.6% this year. This impressive performance has outpaced not only its industry peers but also broader market indicators such as the Zacks Finance sector and the S&P 500 index. Compared to competitors like Coinbase Global, Inc. and BTCS, Bitcoin Depot’s stock has shown significantly stronger gains.
### Demand Surge Amid Regulatory Support
The growing interest in cryptocurrencies has positively impacted Bitcoin Depot, particularly due to favorable regulatory conditions established during the Trump administration. While the company primarily operates within the domestic market, ongoing international trade tensions and geopolitical issues may affect consumer attitudes and the overall demand for cryptocurrencies, posing potential challenges to future growth. The question remains whether Bitcoin Depot’s stock can maintain its upward trajectory amidst macroeconomic uncertainties.
### Revenue Growth Driven by Kiosk Expansion
Bitcoin Depot has reported consistent revenue growth over the past few years. Although revenues saw a dip in 2024, they rebounded in 2023 and continued to rise in the first quarter of 2025 compared to the previous year. The company primarily generates revenue from its Bitcoin Teller Machines (BTMs), which accounted for nearly all of its income, with a notable 8,463 kiosks installed across the U.S., Canada, and Puerto Rico as of March 31, 2025. These kiosks have a typical transaction size of $300.
In 2022, Bitcoin Depot introduced BDCheckout, a service that allows customers to load cash into their accounts at retail checkout counters, facilitating Bitcoin purchases. This innovation enables the company to expand its customer base without the significant upfront costs associated with setting up new kiosks. By March 31, 2025, BDCheckout was operational in 10,926 retail locations. The company aims to enhance transaction volumes through BDCheckout while minimizing capital expenditures, with a focus on achieving profitability.
Additionally, Bitcoin Depot is actively pursuing partnerships and new opportunities to expand its BTM installations, which could further enhance transaction volumes and revenue. Recently, the company acquired Pelicoin, LLC, to strengthen its foothold in the Gulf South region. In 2024, it established multiple franchise profit-sharing arrangements and secured agreements with convenience stores, indicating a strategic approach to diversify and grow its operations.
### Positive Regulatory Environment for Crypto
The favorable regulatory landscape under the Trump administration positions Bitcoin Depot to benefit greatly. In May 2025, SEC Chair Paul Atkins announced plans to reform cryptocurrency regulations and evaluate the need for additional exemptions for certain crypto tokens classified as securities. Earlier, in March 2025, the FDIC confirmed that institutions it oversees could engage in crypto activities without prior approval. Additionally, an executive order by Donald Trump aimed to establish a strategic reserve for cryptocurrencies. These developments indicate a growing acceptance of cryptocurrency, likely increasing demand and presenting significant growth opportunities for companies like Bitcoin Depot.
### Strong Financial Position
As of March 31, 2025, Bitcoin Depot reported cash and cash equivalents amounting to $35 million, with total debt at $55.5 million. In 2023, the company initiated a share buyback program authorizing the repurchase of up to $10 million worth of shares, which concluded on March 31, 2025. Bitcoin Depot does not distribute dividends, opting instead to reinvest its earnings into growth initiatives.
With a forward price-to-earnings (P/E) ratio of 11.78X, Bitcoin Depot’s stock is currently trading below the industry average of 21.63X, suggesting it may offer a more attractive investment compared to peers like Coinbase and BTCS, which have higher P/E ratios. This valuation indicates potential for growth, especially considering Bitcoin Depot’s leading position in the North American BTM market.
### Earnings Forecast and Challenges Ahead
The Zacks Consensus Estimate for Bitcoin Depot indicates earnings of 46 cents per share for 2025 and 51 cents for 2026, reflecting projected year-over-year growth rates of 176.7% and 10.3%, respectively. However, the company faces challenges with rising operating expenses, which increased by 26.5% in 2023 due to higher sales, marketing, and revenue-related costs. While expenses decreased by 4.7% in 2024, they have begun to rise again in early 2025, likely as Bitcoin Depot expands its kiosk network into new markets.
Moreover, Bitcoin Depot operates in a strictly regulated environment, making it susceptible to legal challenges that could impact its operations and financial health. Notably, BTM’s subsidiaries faced legal action from the Iowa Attorney General in February 2025 concerning allegations of failing to prevent fraudulent activities related to their ATMs, which the company denies and is currently contesting. Intense competition from major players like Coinbase and BTCS could also pressure Bitcoin Depot’s pricing strategies.
### Conclusion: A Cautious Outlook for Investors
Given these factors, Bitcoin Depot stock presents a mixed outlook for investors. While there are growth opportunities and a strong financial foundation, the potential for legal issues and competitive pressures warrants caution. Current holders of BTM stock may consider maintaining their positions for long-term gains, while new investors should weigh the risks carefully. Presently, Bitcoin Depot holds a Zacks Rank #3 (Hold), indicating a neutral stance regarding its investment potential.
