SPAC TARGET: Bitcoin Depot to Combine with GSR II Meteora Acquisition

American fintech company Bitcoin Depot, who specializes in the operation of Bitcoin ATMs, has announced this morning that they plan to go public via a business combination with GSR II Meteora Acquisition Corp. (NASDAQ: GSRM). The transaction values the company at $755 million and will add $170 to their balance sheet from the SPAC transaction to fund growth. The total deal size is $855 million. Bitcoin Depot plans to use the funds to fuel growth via acquisitions and scaling-up its platform and products.

It seems like a tough market to sell a Bitcoin ATM company to investors but perhaps the thinking here is that it's a good time to invest in such a company. Compare the valuation at $835 million and to the market cap of another publicly traded Bitcoin ATM operator, Athena Bitcoin Global (OTC: ABIT) at $2.09 billion and it seems fair, perhaps even undervalued. According to Market Research Future, the crypto ATM market size is expected to grow at an 56.5% CAGR from 2022 to 2030. Bitcoin Depot reportedly oprates over 7,000 Bitcoin ATMs across the United States. There are currently over 50,000 of said machines in the US. It would see. That Bitcoin Depot owns a fairly large market share if these estimates are indeed correct.

The deal is expected to close Q1 2023 and is subject to the approval of GSR II Meteora Acqu. shareholders. The proposed deal would have Bitcoin Depot trade on the NASAQ exchange under the ticker symbol "BTM"

Nothing in this post represents financial advice. Always perform your own due diligence when investing.

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