Bitcoin Depot is set to go public through a SPAC deal that will value the U.S. crypto ATM firm at around $885 million, according to Wall Street Journal. The deal comes amid a difficult year for both cryptocurrencies and SPACs, with many keen to see investors’ interest in crypto ATMs which have been criticized for high fees and crimes.
Bitcoin Depot’s Public Debut Comes Amid a Critical Period for Crypto And SPACs
Crypto ATM firm Bitcoin Depot is going public via a deal with a special purpose acquisition company (SPAC) at a valuation of around $885 million. The company is merging with the SPAC GSR II Meteora Acquisition Corp, with the deal expected to be announced Thursday.
Bitcoin Depot’s decision to go public comes amid a critical period for Bitcoin ATMs, which skeptics have been condemning for high fees and criminal activities. Because of this, many are impatient to see how interested will investors be in the firm’s SPAC merger.
But crypto ATM firms also have many supporters who believe these companies provide easier access to cryptocurrencies as they are not required to link their bank accounts or credit cards to their digital wallets. Moreover, completing a transaction via a crypto ATM usually takes just a couple of minutes, compared to crypto exchanges which can sometimes take days to fulfill an order.
According to Coin ATM Radar, there are around 40,000 crypto ATMs in the world, most of which are located in the U.S. Bitcoin Depot claims it is the largest operator of bitcoin ATMs in North America, with over 7,000 machines across the U.S. and Canada.
While the current market drawdown has obliterated the prices of Bitcoin and other cryptocurrencies, Bitcoin Depot says it did not impede the firm’s growth. “We’re actually doing fantastic right now regardless of the market,” said Brandon Mintz, CEO of Bitcoin Depot.
SPACs Lost Almost 50% of Their Value in 2022
In addition to cryptocurrencies, 2022 has also been very challenging for the SPAC space. After experiencing a boom in recent years, the number of SPAC deals this year has plummeted as investors rotate away from risky growth stocks.
CNBC’s Spac Post Deal Index, which tracks the number of SPACs that have taken their target companies public, is down almost 50% in 2022. The decline more than doubled S&P 500’s loss this year as the stock benchmark index goes through a difficult bear market.
The headwinds in equities and crypto markets come as investors prefer to increase their cash holdings and steer clear of risk assets amid 40-year high inflation and hawkish interest rate hikes. Investors are also concerned about a global recession, with nearly 70% of economists projecting the U.S. economy to see a downturn by 2023.
This article originally appeared on The Tokenist
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