Crypto ATM business Bitcoin Depot to list as SPAC
One of the largest operators of cryptocurrency ATMs, Bitcoin Depot, has decided to list by merging with a special purpose acquisition company (SPAC) on the Nasdaq exchange. Bitcoin Depot announced the merger with the SPAC GSR II Meteora Acquisition Group (GSRM) will be complete by the end of 2023.
Bitcoin Depot was founded in 2016 and is based out of Atlanta. Bitcoin Depot's services make it easy, fast, and convenient to exchange fiat currency for Bitcoin.
The total price of the deal is forecast to be $885 million. The transaction estimates to raise around $321 million, which will be deposited into a trust account managed by GSRM and used to provide working capital for Bitcoin Depot.
The funds will provide working capital to expand the business's current and new products.
Over 7,000 Bitcoin Depot stores nationwide
Due to the planned listing during a market downturn, with investors' declining risk tolerance will make raising capital tricky. Bitcoin ATMs allow customers to purchase BTC or other cryptocurrencies with cash or debit cards. Cryptocurrencies are then sent instantly to the customer's preferred wallet.
You don't need to go to a cryptocurrency exchange platform to do all this! Scammers who post fake ads for goods on online marketplaces like eBay and Craigslist have been linked to the crypto ATM business.
Scammers direct victims to deposit cash at an ATM and then transfer cryptocurrency to a specified address. These fraudulent vendors take payment but never send out the purchased items. Across the United States and Canada, BTC Depot has a network of over 7,000 retail locations.
Eighty countries now host over 38,000 cryptocurrency ATMs. Bitcoin Depot, headquartered in Atlanta, claims to have 19.1% of the global crypto ATM market.
Crypto ATM business network expansion
Bitcoin Depot's mission is to spread awareness of BTC to the broadest audience possible. Cryptocurrencies have simplified the processing of monetary transactions.
BTC Depot's CEO and founder Brandon Mintz said, "Today marks an important milestone for Bitcoin Depot." We see a lot of potential for expansion, and we think going public will help us get closer to our ultimate goal of offering a simple and safe way to buy cryptocurrency.
In recent years, SPACs have gained much popularity as a method of public listing. The U.S. Securities and Exchange Commission (SEC) has warned that SPACs will be subject to increased scrutiny, which one must consider before investing.
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