an IPO strategy that could prove to be a loser?

Bitcoin Deposit seems convinced that its plan to go public at a billion dollar valuation through a merger with a special purpose acquisition company (special purpose acquisition companySPAC) will be successful.

Source: video capture, Bitcoin Depot / YouTube

In an interview with Fortune, Brandon MintzCEO of the company which is currently the largest cryptocurrency ATM operator in the world, said that the SPAC merger of Bitcoin Depot will not only allow him to take control of the sector, but also to consolidate the entire industry. crypto industry.

Mintz further disclosed that Bitcoin Depot intends to capitalize on the momentum gained from being a publicly traded company through the acquisition of some of its competitors. This merger, he says, will be one of the biggest M&A deals in the crypto industry.

“This is an opportunity that will allow us to consolidate the industry and be one of the first companies to do so. So far, there hasn’t been any kind of significant similar activity in this space” , did he declare.

Although the CEO did not reveal which cryptocurrency ATM operator Bitcoin Depot has its sights set on, Fortune noted that any such merger would be a win for the company as it would solidify its leadership position in the market. crypto ATM market.

Currently, Bitcoin Depot operates more than 20% of the approximately 30,000 cryptocurrency ATMs in the United States, according to an investor presentation published in August. Coin Cloud, Bitcoin Depot’s closest rival, controls around 1,500 fewer bitcoin ATM kiosks than it does.

Doubts persist about the success of the merger

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

On the one hand, the SPAC merger with GSR II Meteora Acquisition Corp.announced in August and whose completion deadline extends until early 2023, has been criticized by analysts. Jae Yangthe CEO of the decentralized crypto exchange Tacensaid the potential valuation of nearly $1 billion seems unusually high, especially considering it’s a decade-old industry and looking closely at some of the figures released during the company’s investor presentation.

Others noted that an abnormally high percentage of SPAC transactions failed to meet expectations. Earlier this year, Renaissance Capital noted in a report that of the 199 companies that went public through a SPAC in 2021, only about one in ten traded above the asking price.

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