Bitcoin Depot Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, Bitcoin Depot generated revenue of $135.3 million, a decrease of 24.6% from $179.5 million in the same period of 2023. The decline was primarily attributed to lower transaction volumes at its Bitcoin ATMs (BTMs), exacerbated by regulatory changes in California that limited transaction sizes. Kiosk transaction revenue fell to $134.9 million, down 24.5% year-over-year. For the nine-month period, total revenue was $436.9 million, down 19.2% from $540.6 million in 2023.

Despite the revenue decline, Bitcoin Depot reported a net income of $2.3 million for the third quarter, an increase of 115.9% from $1.1 million in the prior year. For the nine months, net income was $2.4 million, down from $3.1 million in 2023. The company’s loss attributable to Bitcoin Depot Inc. improved significantly, with a net loss of $5.0 million for the nine months ended September 30, 2024, compared to a loss of $17.8 million in the same period of 2023.

Total assets increased to $87.4 million as of September 30, 2024, up from $77.4 million at the end of 2023. Current assets also rose to $41.4 million, driven by an increase in cash and cash equivalents, which reached $32.2 million. However, total liabilities surged to $95.3 million, up from $68.0 million, primarily due to a significant increase in non-current notes payable, which rose to $41.9 million from $17.1 million.

Strategically, Bitcoin Depot has expanded its network, operating approximately 8,304 BTMs across North America as of September 30, 2024, up from 6,404 a year earlier. The company also entered into franchise profit-sharing agreements and activated additional kiosks, which are expected to contribute to future revenue growth.

The company’s operational expenses decreased by 13.1% to $16.9 million for the third quarter, reflecting cost management efforts. However, advertising expenses increased to $4.8 million for the nine months, up from $4.0 million in 2023.

Bitcoin Depot continues to face challenges, including a legal dispute with Canaccord Genuity Corp. regarding advisory services, which could result in damages of up to $23 million. The company has acknowledged material weaknesses in its internal controls and is taking steps to address these issues, including hiring additional accounting personnel.