Exhibit 99.1
Why this Atlanta Bitcoin ATM operator is going public via a SPAC deal
By Zach Armstrong
September 1, 2022 at 11:01 AM EDT Updated on September 3, 2022 at 10:04 AM EDT
While Bitcoin’s value is down and deals with special purpose acquisition companies (SPACs) have lost some of their luster, an Atlanta Bitcoin ATM operator is betting on both in its pursuit of becoming the city’s largest crypto company.
Bitcoin Depot, a local Bitcoin ATM operator, will become a publicly listed company following a merger with SPAC GSR II Meteora Acquisition Corp., a Florida-based SPAC. After the transaction closes, the combined company will be named Bitcoin Depot Inc. and trade under the ticker symbol “BTM” on the NASDAQ. The sale is expected to close by the first quarter of next year.
A main reason for choosing the SPAC route is because the help with the acquisition of other companies, will elevate its profile, attract talent and accelerate growth, said company CEO Brandon Mintz, who founded the startup in 2016.
Still, the transaction comes as much of the recent excitement over SPACs, shell companies listed on a stock exchange that sells shares to buy operating businesses, has subsided. After $250 billion was invested in these so-called blank-check companies, investors are betting less on them as market forces have increased risk and potential regulations could make them less profitable. Recently, up to 80% of investors have redeemed their shares in SPAC mergers leaving the companies with little of the capital promised to them, The New York Times reported.
Meanwhile, the future of cryptocurrency also remains in turmoil. As of Sept. 1, cryptocurrency news outlet CoinDesk reported the value of a Bitcoin to be less than $20,0000 — down from the all-time high of about $69,000 in November. Still, Mintz says his company’s model is trending toward profitability thanks to its business format.
“This is one of the safest business models in this space,” Mintz told Atlanta Business Chronicle. “We’re not historically correlated to the price of any crypto bear markets, crypto bull markets or even the stock market … it’s not subject to the volatility like a lot of major exchanges.”
Bitcoin Depot says its valuation will go from $440 million to as high as $755 million following the deal. It will also receive a contribution of around $170 million to its balance sheet after fees, expenses and debt to be paid.
The Atlanta-based startup produces ATM machines that convert cash into Bitcoin, Ethereum and Litecoin. It also allows for buying and selling on those cryptocurrencies.
