Shares of Bitcoin Depot (BTM) have gained about 183% in one month. The penny stock is benefitting from the growing adoption of cryptocurrencies, especially as a medium of exchange. The company owns a vast network of Bitcoin ATMs, or BTMs, scattered across North America. These kiosks enable customers to conveniently buy and sell Bitcoin (BTCUSD), giving the company a unique foothold in the cryptocurrency economy. As more consumers turn to crypto for everyday transactions, Bitcoin Depot is seeing tangible benefits.
This growing demand is reflected in the company’s recent earnings. In the first quarter of 2025, Bitcoin Depot posted a 19% year-over-year increase in revenue. Its performance on the profitability front was even better. Its adjusted EBITDA surged more than threefold to reach $20 million. Driving this performance is a combination of strategic kiosk optimization and a scalable operating model. Moreover, it indicates that once the fixed costs are largely absorbed, Bitcoin Depot can generate meaningful cash flow in the long run.
The company’s strong cash flow has enabled Bitcoin Depot to bolster its financial position. In Q1, it added to its Bitcoin reserves and increased its cash balance, providing greater flexibility to fuel future expansion. Bitcoin Depot continues to focus on expanding its footprint, which is expected to accelerate its growth.
Wall Street is optimistic about Bitcoin Depot’s future, with the highest price target on the Street currently set at $7. That represents a potential upside of around 50% from the stock’s closing price of $4.67 on June 6.
Growing Kiosk Network to Bolster Bitcoin Depot’s Performance
Bitcoin Depot is expanding its kiosk network, which will support its future growth. By the end of the first quarter of 2025, the company had installed 8,483 kiosks. This metric reflects its market penetration and signals increasing demand for its services.
The company employs a data-driven approach to maximize performance. It closely monitors transaction volumes across its network and actively relocates underperforming kiosks to more promising locations. This operational flexibility ensures that each machine is strategically positioned to generate the highest possible revenue.
Bitcoin Depot’s kiosks and BDCheckout access points are situated in ZIP codes that reach a significant portion of the U.S. population. This strategy enhances its visibility among both retail partners and users, boosting traffic and engagement with its machines.
Looking forward, Bitcoin Depot plans to deepen its presence by expanding its footprint within current retail partnerships and forging new ones to target untapped markets. This expansion will be broadening its ecosystem. As the user base grows, so does the opportunity to introduce additional financial products and services, further embedding Bitcoin Depot into the everyday financial lives of its customers.
Meanwhile, global trends remain positive. With several countries beginning to accept cryptocurrency as a legitimate form of payment, Bitcoin Depot sees the potential to scale internationally. These regulatory shifts could pave the way for the company to expand its model into new markets, thereby accelerating its growth.
In short, Bitcoin Depot’s expanding kiosk network and growing adoption of digital currencies augurs well for long-term growth.
Bitcoin Depot to Grow Profitably
Bitcoin Depot is focusing on growing profitably. In Q1, it generated an adjusted EBITDA of $20 million and net income of $4.2 million.
Moreover, the company is choosing to reinvest the majority of its profits into developing new products and services. A key example is BDCheckout, which allows customers to load cash into their accounts at retail checkout counters. These funds can then be used to purchase Bitcoin with the same fee structure as at the company’s kiosks. This approach significantly lowers capital expenditure and operating costs while opening a new, scalable revenue channel from Bitcoin sales.
Overall, its profitable growth and reinvestment strategy positions the company for sustainable expansion and solidifies its leadership in the crypto ATM and digital asset services space.
The Bottom Line
Wall Street analysts endorse Bitcoin Depot and have a “Strong Buy” consensus rating.
Bitcoin Depot’s remarkable stock performance and solid financial results reflect its increasing presence in the cryptocurrency economy. By capitalizing on the rising adoption of cryptocurrencies and leveraging its expansive, strategically positioned kiosk network, the company is well-positioned for long-term growth.
