The Decline in Bitcoin ATMs Worldwide
After a period of significant growth, the total number of Bitcoin ATMs worldwide witnessed a decline in May, deviating from the trend that had been ongoing since July 2023. The primary cause of this decrease was the removal of more than 300 ATMs from service in the United States, which represents a substantial portion of the global Bitcoin ATM market.
According to Coin ATM Radar data, the global count of Bitcoin ATMs dropped from 37,902 to 37,621 in May. The United States experienced the most significant reduction, with 302 machines being taken offline, followed by Canada, the second-largest market, which lost 28 machines. While the reasons for this sudden decrease remain ambiguous, law enforcement agencies in the U.S. have intensified efforts to combat illegal activities facilitated through ATMs, such as extortion and scams.
Challenges and Opportunities in the Bitcoin ATM Industry
Scams associated with Bitcoin ATMs have surged in tandem with the increased adoption of Bitcoin. An alarming incident involved a major manufacturer, General Bytes, encountering a security breach that led to the theft of $1.5 million in Bitcoin from its operators. Nonetheless, the recent installation of new machines in Australia, Switzerland, and Europe has slightly offset the decline, bringing the net reduction in crypto ATMs to 280.
Australia has emerged as the third-largest active network of Bitcoin ATMs globally, following the United States and Canada, boasting 1,041 (2.8%) machines. Despite the dip in Bitcoin ATM quantities, Bitcoin Depot, the leading operator in the U.S., demonstrated consistent earnings in 2024, revealing in its April 15th 10-K annual report that its revenue is not dependent on the price fluctuations of Bitcoin.
“A majority of our users engage with our services for legitimate purposes such as cross-border money transfers, international remittances, and online purchases, rather than speculative Bitcoin trading,” stated Bitcoin Depot.
Bitcoin Depot attributed the lack of correlation between revenues and Bitcoin’s price to the nature of its offerings. Hence, the reduction in Bitcoin ATMs should not be construed as a pessimistic sign for the cryptocurrency market as a whole; instead, it is likely influenced by external factors.
To gain insight on utilizing Bitcoin ATMs, readers are encouraged to consult our comprehensive 2024 Guide.
