Bitcoin Depot: Crypto money machine taps Spac bar money

The boom of the Special Purpose Acquisition Companies went in the sand. The cryptocurrency bubble has burst. Let the Wall Street find a way to bring them together.

Bitcoin Depot is a Bitcoin money machine operator that enables users to buy Bitcoin or other digital currencies with cash on over 7,000 kiosks across North America. It goes to the stock exchange by merging with the blank checks company GSR II Meteora Acquisition to a company value of $ 755 million.

higher interest rates, a weaker stock market and a stricter official control have steamed the appetite of investors on spacs. According to data from the London Stock Exchange Group, only 72 such investment vehicles have been listed in the United States this year and have applied $ 11.9 billion. This is a fraction of the $ 116.8 billion that were collected in the same period of the previous year. Among this year's newly listed spacs have found only three a company with which they can merge. None still closed.

Nevertheless, Bitcoin Depot has managed to negotiate a high rating. The deal evaluates its equity with 147.5 times the net profit reported for 12 months to June. A year ago, the company might have justified this high multiple forecasts. But the US regulatory authorities take action against this practice. Bitcoin Depot has decided not to give a foresight.

Instead, the company based in Atlanta indicates the growth of the transaction volume - which is allegedly decoupled from crypto prices. The income for the first six months of 2022 rose by $ 322 million, while Bitcoin prices fell to a third of their maximum.

It is difficult to imagine how growth can be maintained. Bitcoin Depot's fees are high. A commission of 20 percent is charged to the value of the transaction plus a processing fee of $ 3. In addition, the FBI has raised the alarm due to an increase in Bitcoin fraud. Spac fusion agreements disintegrate at a rapid pace. It is an unpleasant time to pull through a transaction like this.