Bitcoin depot to go ahead with SPAC merger after reporting strong revenue
Leading crypto ATM operator Bitcoin Depot has reiterated its plans to merge with GSR II Meteora Acquisition Corp, the $321 million special purpose acquisition company (SPAC) formed for facilitating mergers.
SPAC deal set for Q1 2023
According to GSR II Meteora Acquisition Corp’s filing with the U.S. Securities and Exchange Commission made on 1 December, the SPAC’s board of directors has unanimously approved the transaction agreement, i.e the merger with Bitcoin Depot.
The deal is valued at a whopping $885 million. Once the transaction is completed, the newly combined entity consisting of the crypto ATM operator and the SPAC will be renamed to Bitcoin Depot Inc.
Once it goes public, it will be listed on the Nasdaq exchange under the ticker BTM. The deal is expected to conclude in the first quarter of 2023.
Strong growth in Bitcoin Depot’s revenue
According to a joint press release from Bitcoin Depot and GSR II Meteora Acquisition Corp, the filing with the SEC also included additional disclosures relating to the entities along with the crypto ATM operator’s financial report for the third quarter that ended 30 September 2022.
The crypto ATM operator has reported a revenue of $497.2 million, marking an impressive increase of 25% YoY.
“Bitcoin Depot’s momentum continued through the third quarter as we delivered record year-to-date revenue growth despite the turmoil in the broader crypto market, reinforcing our mission to safely, securely, and efficiently bring crypto to the masses,” said Brandon Mintz, CEO, and Founder of the firm.
The joint statement clarified that the merger is subject to regulatory and stockholder approvals and other closing conditions. Bitcoin Depot stands to gain up to $170 million from this deal.
The merger was revealed earlier this year in August. It was one of the first companies in this space to announce an M&A deal. Bitcoin Depot CEO stated that a public listing will enhance the firm’s ability to scale and evolve.
Bitcoin Depot currently operates over 7,000 crypto ATMs across 47 states in the United States. With a nearly 20% market share, the firm is currently the largest Bitcoin ATM operator in North America.