Bitcoin ATM Operator Bitcoin Depot Set To Go Public Via $885 Mln SPAC Deal
Bitcoin ATM operator Lux Vending LLC dba Bitcoin Depot, Inc., is set to become a publicly listed company through an approximately $885 million business combination deal with GSR II Meteora Acquisition Corp. (GSRM), a publicly traded special purpose acquisition company or SPAC. Bitcoin Depot will list soon on the Nasdaq Stock Market under the new ticker symbol “BTM.”
Bitcoin Depot’s mission has been to “Bring Crypto to the Masses.” Its products and services provide an intuitive, quick, and convenient process to convert cash into cryptocurrency through its Bitcoin ATMs and Mobile App.
Atlanta-based Bitcoin Depot has a Bitcoin ATM Network in North America with over 7,000 kiosk locations across the US and Canada. Its mobile app allows users to locate nearby kiosks and manage their crypto wallet.
Assuming no redemptions, the combined company will have an estimated post-transaction enterprise value of $755 million with an estimated equity value of $885 million from the contribution of up to $170 million in cash proceeds from the transaction, net of cash distribution to selling equity holders and expenses.
The net proceeds raised from the transaction will consist of up to $321 million of cash held in GSRM’s trust account and will be used to support Bitcoin Depot’s working capital, complete acquisitions and scale its platform and suite of products.
The business combination has been unanimously approved by the leadership team of Bitcoin Depot and the Board of Directors of GSRM and is expected to close by the first quarter of 2023, subject to regulatory and stockholder approvals, and other customary closing conditions.
SPAC deals have become more common in recent years as a faster IPO process with less worry about the swings in broader market sentiment. SPAC is a shell corporation listed on a stock exchange with the purpose of acquiring a private company to enable it to go public without going through the traditional IPO process.
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