Crypto ATM Operator Bitcoin Depot Will Go Public Through $885M SPAC Deal

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Crypto ATM Operator Bitcoin Depot Will Go Public Through $885M SPAC Deal

Popular cryptocurrency ATM operator Bitcoin Depot was planning to become a publicly traded company through a partnership with SPAC GSR II Meteora Acquisition Corp.

A special purpose acquisition company (SPAC) is a public company created to merge or acquire an existing entity. Although SPACs raise capital from investors through IPOs, they do not have active business operations and investors can withdraw their money before a merger or acquisition closes.

SPAC offers a cheaper and faster alternative to traditional IPOs, allowing private companies to go public.

Bitcoin Depot signs $885 million SPAC deal

The Wall Street Journal reported Thursday that the deal between Bitcoin Depot and GSR II Meteora SPAC is worth $885 million. If the deal is approved and completed, Bitcoin Depot will replace the shell company in the stock market.

The report further notes that GSR II Meteor raised approximately $320 million, which the ATM operator could use to expand its operations. However, if investors choose to cash out their investments, the company will end up with less funds.

Bitcoin Depot is one of the largest operators in North America. The company was founded in 2016 with more than 7,000 kiosks in the United States and Canada located in major stores such as Circle K.

Brandon Mintz, the founder and CEO of Bitcoin Depot, told the WSJ that the company has done well despite the recent crash that wiped over $1 trillion from the crypto market.

“We’re doing fantastic things right now, regardless of the market,” he said.

The CEO noted that the company is seeing more and more use cases for cryptocurrencies in cross-border payments and funds transfers. The crypto ATM operator hopes to explore these use cases with the SPAC agreement.

Crypto Firms Go Public Through SPACs

Bitcoin Depot will not be the first crypto entity to go public through SPAC if the deal works out. Companies such as the crypto exchange Bakkt and bitcoin mining firm Cipher Mining have been listed through SPAC deals.

While more crypto companies such as Rox are also planning to go public through the same route, some crypto SPAC transactions are currently at risk as the companies involved have extended transaction termination deadlines.

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