The firm may also have a financing round that will close at the same time as the deal

Crypto ATM operator Bitcoin Depot will become a public company through SPAC deal

25.08.2022 - 14:30


2 min

What’s new? Crypto ATM operator Bitcoin Depot has announced it will go public on the Nasdaq US Stock Exchange through a merger with special purpose acquisition company (SPAC) GSR II Meteora Acquisition Corp. in an $885 million deal. A listing using SPAC does not involve an initial public offering (IPO). GSR has about $320 million that Bitcoin Depot can use for development. That said, SPAC investors can withdraw the money before the merger is completed, leaving the company with much less money. Bitcoin Depot could also have a funding round that would close at the same time as the deal. This was reported by The Wall Street Journal.

The WSJ material

What else does the publication report? One of SPAC's executive directors, Gus Garcia, said he is confident in raising financing for Bitcoin Depot as the company has been growing steadily. According to Bitcoin Depot CEO Brandon Mintz, the company had record sales and earnings before taxes, depreciation, and amortization in the second quarter, reflecting the growing number of uses for the cryptocurrency, such as paying for physical goods and sending money overseas. He also said the company has a complex compliance system from US regulators, which includes asking for additional documentation from consumers depending on the size of the transaction.

The company recently launched a product that allows customers to use cash at more than 8000 stores to buy cryptocurrency using a mobile app without physical ATMs.

In 2021, Bitcoin Depot ranked 357th on the list of the 5000 fastest-growing organizations in the United States. In 2020, the company was No. 1103 on that list. Its representatives say Bitcoin Depot is the largest provider of bitcoin ATMs in North America, with more than 7000 machines in the US and Canada.

In February, Japanese cryptocurrency exchange Coincheck Inc said it would go public on the Nasdaq by merging with SPAC company Thunder Bridge Capital Partners IV Inc in a $1,25 billion deal. The combined Coincheck Group NV will be listed under the ticker CNCK.

In July, Circle, the issuer of the USDC stablecoin, announced plans to list on the New York Stock Exchange (NYSE) in the fourth quarter of 2022. Circle plans to list through a merger with SPAC company Concord Acquisition Corp.

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