In a story so tailor-made for the height of 2021’s bull market that you might think it was generated by a bot using some of that year’s most popular investment themes, a Bitcoin (BTC -0.20%) ATM operator is going public via SPAC. GSR II Meteora Acquisition Corp. (GSRM -0.05%) has reached a deal to take Bitcoin Depot public, which values the nation’s largest Bitcoin ATM operator at about $885 million.
Since the pinnacle of the SPAC boom in early 2021 and crypto’s zenith in late 2021, both types of assets have fallen on hard times as rising interest rates, soaring inflation, and an uncertain economy have diminished investor appetite for risky assets. However, a buzzy merger like this is still bound to get plenty of attention from investors. So is there more sizzle than steak, or is there something of substance here? Here are two green flags and one red flag for Bitcoin Depot.
Image source: Getty Images.
Bitcoin Depot is profitable
Founded in 2016, which is ancient in crypto terms, Bitcoin Depot says it is North America’s largest provider of Bitcoin ATMs, with about 7,000 kiosks across the United States and Canada. Its Bitcoin ATMs can be found at locations such as Circle K, a popular convenience store throughout much of North America. Bitcoin Depot estimates that it has about 20% of the share of the Bitcoin ATM market in the United States and about 8% in Canada.
Unlike many companies that went public via SPAC and have seen their stocks fall…
