According to a statement, Bitcoin Depot, the world’s largest operator of crypto ATMs, intends to go public with a Nasdaq listing by merging with a unique purpose acquisition company (SPAC), GSR II Meteora, for an estimated $885 million. The transaction is expected to be completed in the first quarter of 2023.
Crypto ATMs allow users to buy tokens with cash or debit!
The ATMs allow users to buy crypto with cash or debit cards and wire the tokens directly to a wallet of their choice, bypassing the need for a crypto exchange. Scammers, on the other hand, use them to advertise goods on eBay or Craigslist, instruct their victims to pay by depositing physical currency in an ATM and wiring crypto to a specific wallet, and then fail to deliver the goods. As a result, the Financial Conduct Authority (FCA) of the United Kingdom (UK) issued a warning in March that crypto ATMs operating in the country are illegal and must be shut down.
According to Coin ATM Radar data, Atlanta-based Bitcoin Depot has a network of over 7,000 locations across the United States and Canada, giving it a global market share of 19.1%. Additionally, the data shows that over 38,000 crypto ATMs are installed in nearly 80 countries.
Mergers with SPACs have been a popular way to go public in recent years, accounting for more than half of all initial public offerings in 2020-2021, according to the Securities and Exchange Commission (SEC). However, not all are realized, with some, such as the planned $1.25 billion listing of bitcoin (BTC) miner PrimeBlock, being canceled as the crypto market slumped.
The SEC has stated that it plans to increase its scrutiny of SPAC mergers, proposing “specialized disclosure requirements concerning… compensation paid to sponsors, conflicts of interest, dilution, and the fairness of these business combination transactions.”