Is US Bitcoin ATM Operator Going Public With $1 Billion Valuation a Loser?

Supply: a video screenshot, Bitcoin Depot / YouTube

Bitcoin Depot is assured that its plan to go public at a $1 billion valuation by way of a particular function acquisition firm (SPAC) merger deal can be profitable. 

In an interview with Fortune, Brandon Mintz, CEO of the corporate that’s presently the largest operator of crypto ATMs globally, stated that Bitcoin Depot’s SPAC merger won’t solely place it to take over the sector but additionally consolidate all the crypto trade. 

Mintz additional revealed that Bitcoin Depot intends to construct on the momentum it’s going to get from being a publicly traded firm by buying a few of its competitors. This merger, he says, can be one of the vital M&A actions within the crypto trade. 

“It’s a transfer to permit us to consolidate the trade and be one of many first corporations to do this. There has not been any kind of vital M&A exercise within the house to this point,” he stated. 

Whereas the CEO didn’t reveal which crypto ATM operator Bitcoin Depot has its sights on, Fortune famous that any such merger can be a win for the corporate as it could additional prolong its market-leading place amongst crypto ATM operators.

At current, Bitcoin Depot operates greater than 20% of round 30,000 crypto ATMs within the U.S. in response to an investor presentation it revealed in August. Coin Cloud, the closest rival of Bitcoin Depot, controls round 1500 fewer Bitcoin ATM kiosks than it.  

Doubts persist in regards to the success of the Bitcoin Depot SPAC merger 

Regardless of the CEO’s confidence in Bitcoin Depot utilizing an inflow of money from its public itemizing to finance additional mergers, trade observers have remained skeptical of the plan. 

For one, the SPAC merger with GSR II Meteora Acquisition Corp., which was announced in August and has a completion timeline that reaches early 2023, has been referred to as out by analysts. Jae Yang, the CEO of decentralized crypto alternate Tacen, stated the potential SPAC valuation of almost a billion {dollars} appears unusually excessive, particularly when bearing in mind the decade-old trade and a number of the numbers from the corporate’s investor presentation. 

Others have famous that an unusually excessive share of SPAC offers have failed to fulfill expectations. Earlier this 12 months, Renaissance Capital famous in a report that among the many 199 corporations that went public by way of a SPAC inside 2021, solely about one in 10 had been buying and selling above its asking worth. 

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