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Source: a video screenshot, Bitcoin Depot / YouTube

Bitcoin Depot is confident that its plan to go public at a $1 billion valuation through a merger deal with a Special Purpose Acquisition Company (SPAC) will be successful.

In an interview with FortuneBrandon Mintz, CEO of the company which is currently the largest crypto ATM operator in the world, said Bitcoin Depot’s SPAC merger will position it not only to take over the sector, but also to consolidate the entire industry. of cryptography.

Mintz further disclosed that Bitcoin Depot intends to leverage the momentum it will gain as a publicly traded company by acquiring some of its competitors. This merger, he says, will be one of the biggest M&A activities in the crypto industry.

“This is a decision that allows us to consolidate the industry and to be one of the first companies to do so. There hasn’t been any sort of significant merger and acquisition activity in the space so far,” he said.

Although the CEO did not reveal which crypto ATM operator Bitcoin Depot had its sights on, Fortune noted that such a merger would be a win for the company as it would further expand its market-leading position among operators. of crypto ATMs.

Currently, Bitcoin Depot operates over 20% of the approximately 30,000 crypto ATMs in the United States according to a investor presentation he published in August. Coin Cloud, Bitcoin Depot’s closest rival, controls about 1500 bitcoin kiosks less than him.

Doubts Linger Over Success of Bitcoin Depot SPAC Merger

Despite the CEO’s confidence in Bitcoin Depot using an influx of cash from its public listing to fund further mergers, industry watchers remained skeptical of the plan.

On the one hand, the SPAC merger with GSR II Meteora Acquisition Corp., which was announcement in August and has a completion schedule that reaches early 2023, analysts have called. Jae Yang, CEO of decentralized crypto exchange Tacen, said SPAC’s potential valuation of nearly $1 billion seems unusually high, especially considering the decade-old industry and certain numbers from the company’s investor presentation.

Others noted that an unusually high percentage of SPAC deals fell short of expectations. Earlier this year, Renaissance Capital noted in a report that of the 199 companies that went public via a SPAC in 2021, only about one in 10 had traded above their asking price.



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