After a 10-month period of growth, the number of Bitcoin ATMs worldwide declined in May, interrupting a trend of expansion that began in July 2023. The decrease was driven largely by the removal of over 300 ATMs from service in the United States, which represents over 80% of the global Bitcoin ATM market.
US Bitcoin ATM Numbers Decline Sharply
According to data from Coin ATM Radar, the total number of Bitcoin ATMs globally fell from 37,902 to 37,621 in May. The US saw the largest decline, losing 302 machines, while Canada, the second-largest market for Bitcoin ATMs, lost 28 machines. While the reasons for this sudden decline are unclear, law enforcement agencies in the US have been actively targeting ATMs used for illegal activities like extortion and scams.
Scams related to Bitcoin ATMs have become increasingly common in recent years, coinciding with the rise in Bitcoin usage. Last year, a major manufacturer, General Bytes, experienced a major security breach that resulted in the theft of $1.5 million worth of Bitcoin from its operators.
At the time of publication, the net decline in crypto ATMs has been reduced to 280 due to the installation of new machines in Australia, Switzerland, and Europe, however.
Australia has quickly become the third-largest network of active Bitcoin ATMs after the U.S. and Canada, with 1,041 (2.8%) machines.
What Effect Does This Have On Bitcoin Prices?
Despite the decline in Bitcoin ATM numbers, Bitcoin Depot, the largest Bitcoin ATM operator in the US, reported steady earnings in 2024. The company’s April 15th 10-K annual report revealed that its revenue is not correlated with the price of Bitcoin.
Bitcoin Depot stated that a majority of its users utilize its services for legitimate purposes, such as money transfers, international remittances, and online purchases, rather than for speculation on the price of Bitcoin.
Q1 Earnings Report dropped this morning.
Our expansion is on the rise with Puerto Rico and Australia kiosks being deployed and large partnerships show just how much Bitcoin Depot is dedicated to Bringing Bitcoin to the Masses®️#bitcoin #bitcoindepot #btm #btc #expansion… pic.twitter.com/vwt7SqcaKe— Bitcoin Depot⚡️ (@Bitcoin_Depot) May 14, 2024
Bitcoin depot added the lack of correlation between revenues and the BTC price is partly due to the nature of the services provided. Therefore, this decline shouldn’t be interpreted as a bearish indicator for the crypto market at large – but is instead likely credited to external factors.
To learn how to use Bitcoin ATMs, refer to our 2024 Guide.