Bitcoin Depot Rides on Kiosk Expansion: Bullish on Bitcoin Potential?

Bitcoin Depot Inc. BTM revenues have been growing in the past couple of years, primarily driven by BTM Kiosks, which accounted for roughly 99.7% of its total revenues in the first quarter of 2025.

As of March 31, 2025, Bitcoin Depot had 8,463 BTM Kiosks installed across the United States, Canada and Puerto Rico, with a median kiosk transaction size of $300. Further, in June 2025, the company acquired the assets of Pelicoin, LLC, to strengthen its presence in the Gulf South region of the United States. The transaction will expand kiosk locations across Louisiana, Mississippi, Tennessee, Alabama and Texas.

Moreover, Bitcoin Depot purchased additional Bitcoin under its treasury strategy, holding more than 100 Bitcoins in its treasury. This reinforces its confidence in Bitcoin’s long-term potential as both a strategic asset and a store of value.

Last year, the company entered into seven franchise profit-sharing arrangements, under which counterparties will earn a share in profits generated by a particular group of kiosks. Also, it secured a deal with CEFCO for 72 out of their more than 200 locations to diversify within the convenience store industry. The company also signed a master placement agreement with EG America LLC to install BTM kiosks in more than 900 locations.

Thus, Bitcoin Depot aims to capitalize on existing partnerships and new ones to expand its BTM Kiosks to drive higher transaction volumes, which, in turn, will boost revenues.

What are BTM’s Peers Doing?

Bitcoin Depot’s close peers like Coinbase Global Inc. COIN and BTCS, Inc. BTCS have been capitalizing on cryptocurrency tailwinds. While Coinbase has been emphasizing stablecoins and staking services, BTCS focuses on an Ethereum-focused strategy.

The recent wave of deregulation in crypto policies is expected to favor companies like Bitcoin Depot, Coinbase and BTCS by reducing compliance burdens and opening up new revenue opportunities.

Bitcoin Depot’s Price Performance, Valuation and Estimates

Bitcoin Depot shares have soared 228.4% this year, significantly outperforming the S&P 500’s gain of 8.3%.

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From a valuation standpoint, BTM trades at a 12-month forward price-to-earnings ratio (P/E F12M) of 10.98X, below the industry average.

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The Zacks Consensus Estimate for Bitcoin Depot’s 2025 earnings implies a surge of 176.7% on a year-over-year basis, while 2026 earnings are expected to grow at a rate of 10.3%. In the past week, earnings estimates for 2025 and 2026 have remained unchanged.

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BTM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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