Bitcoin Depot Inc. · NASDAQ:BTM
Bitcoin Depot — SPAC Merger (January 2023)
40 slides from Bitcoin Depot's SPAC merger presentation, January 2023
Slide 1: Investor Day Presentation
Investor Day Presentation January 2023
Slide 2: Disclaimer
Disclaimer For the purposes of this notice, this “presentation” will mean and include the slides, any oral presentation of the slides by members of management of GSR II Meteora Acquisition Corp. (“GSRM”) or Lux Vending, LLC d/b/a Bitcoin Depot (the “Company” or “Bitcoin Depot”) or any person on thei
Slide 3: Disclaimer
Disclaimer Forward-Looking Statements: This presentation includes “forward-looking statements” within the meaning of the federal securities laws, including, but not limited to, opinions and projections prepared by the Company’s and GSRM’s management. Forward-looking statements generally relate to fu
Slide 4: Disclaimer
Disclaimer The Company believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company believes that the use of these non-
Slide 5: GSRM Team Overview
GSRM Team Overview Gus Garcia Lewis Silberman Anantha Ramamurti Joseph Tonnos Yuya Orime Co-CEO & Director Co-CEO & Director President & Director CFO Senior Vice President ▪ GSR II Meteora Acquisition Corp (“GSRM”) completed its IPO in March 2022 with $321 million cash-in-trust ▪ Highly experienced
Slide 6: What Bitcoin Depot IS and IS NOT
What Bitcoin Depot IS and IS NOT Bitcoin Depot IS… Bitcoin Depot IS NOT… An Easy Way to Convert Cash to Bitcoin A Vendor of Security Tokens (only sells BTC) A Federally-Licensed Money Services Business / State-Licensed Money Transmitter (1) A Custodian of Customer’s Digital Assets Proactively Em
Slide 7: Transaction Overview
Transaction Overview Key Transaction Terms (3) (2) Transaction will result in approximately $170 million of cash (assuming 0% redemption) added to Bitcoin Depot’s balance sheet to go toward funding its business plan. Earn-out of 15 million shares outstanding at close issued to existing Bitcoin (4) D
Slide 8: Key Business Updates Since Transaction Announcement
Key Business Updates Since Transaction Announcement Business Performance Record Q3'22 revenues and adjusted EBITDA Q3’22 revenue was $175mm Our LTM transaction volume increased by 37% (1) despite a 50%+ drop in trading price of BTC in the same period Our EBITDA margin for 9 months ended September 30
Slide 9: Company Overview
BITCOIN DEPOT Company Overview
Slide 10: Bringing Bitcoin to the Masses
Mission BRINGING BITCOIN to the MASSES
Slide 11: Entrepreneurial and Visionary Management Team
Entrepreneurial and Visionary Management Team Brandon Mintz Scott Buchanan Glen Leibowitz Founder & Chief Executive Officer Chief Operating Officer Chief Financial Officer Cash to Crypto Sarah Wessel Jason Sacco Mark Smalley Bill Knoll VP of Sales VP of Operations Chief Compliance Officer Head of Pr
Slide 12: Bitcoin Depot at a Glance
Bitcoin Depot at a Glance Leading BTM (1) operator providing a simple and convenient process to convert cash into cryptocurrency $1.4B 2.5M 25k ~7k 173% $35M Total Transacted Total Transactions Installed Kiosks Same-Kiosk Sales (4) LTM Adjusted Monthly Active Users (3) Volume (2) Completed (2) in No
Slide 13: Cash Remains Integral Part of Economy
Cash Remains Integral Part of Economy 20% 29% Currency in Circulation (U.S.) (3) Share of Payments % of U.S. Adults Preferring to ($ Trillion) in Cash (2021) (1) Use Cash to Pay for Goods (2) +8% CAGR $2.3 $2.2 Share of Payments Use for All Payments (by Number) (1) $2.1 2016 31% 18% 27% 10% 13% $1.8
Slide 14: Get Bitcoin in a Minute
Get Bitcoin in a Minute TM 1 2 3 4 Setup a Bitcoin Wallet Choose Crypto Amount Scan Digital Wallet Receive Crypto Create Un-Hosted Bitcoin Depot Wallet Click “Buy Crypto” and Choose Insert Cash and or Link Other Digital Wallet Scan the QR Code on Kiosk the Amount to Purchase Click “Finish” Mobile Ap
Slide 15: Flow of Funds – Bitcoin ATM
Flow of Funds – Bitcoin ATM 1 2 Cash Cash Digital Wallet User (We never take custody of user’s wallet) Bitcoin Depot BTM Bitcoin 1 2 Bitcoin Bitcoin Hot Wallet Bitcoin Hot Wallet 1 When a user inserts cash into kiosk, we initiate a transaction on the blockchain to send Bitcoin from our hot wallet in
Slide 16: Why Our Users Love Us
Why Our Users Love Us Customers use the Bitcoin Depot mobile app to access several dynamic tools that are key to the cryptocurrency user experience Thousands of Convenient Locations Simple & Quick Account Set Up Bitcoin Available in Minutes Responsive Customer Support Transact Without a Bank Account
Slide 17: Overview of Our Users
Overview of Our Users User Survey Data (1) User Engagements Customer Use Cases of Bitcoin Median Kiosk Transaction Size ~2/3 of Our Users Are Mainly Using Bitcoin for Remittance and Online Purchases 39% 27% 23% 6% 5% $180 $176 Send to Others Online Purchases $170 Investment Store of Value $168 To Co
Slide 18: Why Our Partners Love Us
Why Our Partners Love Us Benefits to Retailers Retailer Distribution Overview Transaction Volume Breakdown Increased Average (CY2021: $528M) (2) Customer Spend Predictable Monthly Rent 6% 22% Small Kiosk Hands-off: Bitcoin Depot Footprint (2’ x 2’ ft) Manages Entire Process Increased Retail Store 72
Slide 19: Setting the Bar with our Compliance Practices and Standards
Setting the Bar with our Compliance Practices and Standards Best-in-Class Compliance is a Core Value for Bitcoin Depot Bitcoin Depot's compliance team takes a proactive approach to 13 industry requirements, monitoring and reporting suspicious activities and working closely with law enforcement as re
Slide 20: Bitcoin Depot Compliance Infrastructure
Bitcoin Depot Compliance Infrastructure People: Experienced Technology: Multi-Layer Communication: Proactive Dialogue Compliance Team Compliance Procedures with Regulatory Agencies Bitcoin Depot’s compliance team Accounts are verified at the time Bitcoin Depot coordinates closely has experience in A
Slide 21: Investment Highlights
BITCOIN DEPOT Investment Highlights
Slide 22: Investment Highlights
1 2 3 4 5 Investment Highlights 1 Beneficiary of Megatrend: Broadening Adoption of Cryptocurrencies 2 Network of Approx. 7,000 Kiosks for Converting Cash to Digital Currency, with Convenient, High-Performing Locations 3 Attractive Combination of Historical Growth and Current Profitability with Demon
Slide 23: Digital Asset Market Tailwinds
1 2 3 4 5 Digital Asset Market Tailwinds Growth of Global Bitcoin ATM Market (1) Annual Transaction Volume ($bn) by Payment Network (2021) (2) # of BTMs 38,610 $13,505 34,359 +85% CAGR $7,722 14,058 $3,007 6,362 4,107 $1,284 2,078 $504 970 2016 2017 2018 2019 2020 2021 2022 (1) Source: Coinatmradar.
Slide 24: Bitcoin Depot has Leading BTM Market Share in North America
1 2 3 4 5 Bitcoin Depot has Leading BTM Market Share in North America Bitcoin Depot currently operates approximately 7,000 kiosks in 47 U.S. states and 10 Canadian provinces Top Bitcoin ATM Operators (United States) (1) – Our kiosks and BDCheckout access points are located in zip codes 6,560 (20%) a
Slide 25: Robust Retail Partnerships Pave Our Path for Further Growth
1 2 3 4 5 Robust Retail Partnerships Pave Our Path for Further Growth Bitcoin Depot is Circle K’s Exclusive BTM Provider We Partner with Major Retailers (1) Largest Privately Owned Fortune 500 U.S. Gas Station Chain Specialty Retailer Over 1,900 kiosks deployed across U.S. and Canada as of Major Con
Slide 26: Demonstrated Track Record of Success
1 2 3 4 5 Demonstrated Track Record of Success Introduced Announced Exclusive Partnership with By the end of 2019, the Company nearly triples the size of its kiosk network to over 500 Achieved No.1 BTM Operator Bitcoin Depot begins using a sophisticated BTMs across 30 U.S. states cryptocurrency mana
Slide 27: Transaction Volumes Decoupled from Bitcoin Prices
1 2 3 4 5 Transaction Volumes Decoupled from Bitcoin Prices $200 $80 $180 $70 $160 $60 Total Transaction Volume ($mm) $140 Bitcoin Price (1) ($’000) $120 $50 $100 $40 $80 $30 $60 $20 $40 $20 $10 $0 $0 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Total Transaction Volume Bitcoin
Slide 28: Transaction Volume by Kiosk Cohort
1 2 3 4 5 Transaction Volume by Kiosk Cohort Annual Cohort 9 Months Ended September 30th Cohort Initial Year Transaction Volume 2021 Transaction Volume CAGR (1) Initial Year 9M Transaction Volume 9M 2022 Transaction Volume CAGR (1) $254 $193 Transaction Volume ($mm) Transaction Volume ($mm) +109% +1
Slide 29: Cryptocurrencies “At The Register”
1 2 3 4 5 Cryptocurrencies “At The Register” We signed an agreement with an industry leading global payments technology company, allowing customers to purchase crypto at over 8,000 retail locations across 22 states and Puerto Rico (1) Agreements with retailers that have over 18,000 locations (1) Thr
Slide 30: A Leading BTM Operating System Provider
1 2 3 4 5 A Leading BTM Operating System Provider Potential Benefits to Bitcoin Depot In Q3 2021 Bitcoin Depot acquired a majority interest in BitAccess, a leading BTM operating system provider Reduce cost of software Increase Vertical Kiosk Software Operator Panel to operate deployed Integration ki
Slide 31: Multiple Future Growth Opportunities
1 2 3 4 5 Multiple Future Growth Opportunities Credit/Debit International Industry Transactions Expansion Consolidation on BTMs Additional Consumer- Buy/Sell Cryptos B2B Software Facing Financial on Traditional and Data Solutions Services Cash ATMs 31
Slide 32: Financial Summary
Financial Summary ($mm) Quarterly Annual 9M Ended Sep. 30th CY2021 A CY2022 A CY2020 A CY2021 A CY2021 A CY2022 A Q1 Q2 Q3 Q1 Q2 Q3 Revenue $245 $549 $397 $497 $101 $147 $149 $155 $167 $175 YoY Growth 262% 124% 141% 25% 265% 187% 73% 53% 14% 18% Adjusted Gross Profit (1) $31 $56 $42 $53 $11 $13 $18
Slide 33: Transaction Overview
BITCOIN DEPOT Transaction Overview
Slide 34: Transaction Overview
Transaction Overview Key Transaction Terms (3) (2) Transaction will result in approximately $170 million of cash (assuming 0% redemption) added to Bitcoin Depot’s balance sheet to go toward funding its business plan. Earn-out of 15 million shares outstanding at close issued to existing Bitcoin (4) D
Slide 35: Bitcoin Depot: Q1 – Q3 2022 Relative Performance Update
Bitcoin Depot: Q1 – Q3 2022 Relative Performance Update Annotated Bitcoin Price Chart $60,000 May 9: Stablecoin Jul 1: Three Jul 5: Voyager Aug 4: BlackRock announces TerraUSD loses 1-to-1 Arrows Capital Digital Assets files partnership with Coinbase to provide Mar 31 dollar peg, causing files for C
Slide 36: Detailed Comparable Companies Statistics
Detailed Comparable Companies Statistics ($ in millions, except per share date) Valuation Metrics Operating Metrics Market Enterprise EV /EBITDA Revenue Gross Profit EBITDA Revenue Growth EBITDA Margin (1) (2) Company Name Cap Value 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 Digital
Slide 37: Key Business Takeaways
Key Business Takeaways Mainstreaming of Cryptocurrency and Digital Assets #1 Bitcoin ATM Operator in North America with Approximately 7,000 Kiosks Key Retail Relationships, Highlighted by Circle K Multiple Service Offerings and Geographic Expansion Opportunities Driving Growth Meaningful Revenue Sca
Slide 38: Appendix
BITCOIN DEPOT Appendix
Slide 39: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials ($mm) Actual CY2020 CY2021 9M 2021 9M 2022 Revenue $ 245 $ 549 $ 397 $ 497 Cost of Revenue (excluding Depreciation & Amortization) (1) (214) (493) (355) (444) Adjusted Gross Profit $ 31 $ 56 $ 42 $ 53 ($mm) Actual CY2020 CY2021 9M 2021 9M 2022 Net Income $ 14 $
Slide 40: Historical Balance Sheet Summary
Historical Balance Sheet Summary ($mm) Actual CY2020 CY2021 9M 2022 Cash and Cash Equivalents $ 41 $ 38 $ 38 Other Current Assets 1 9 3 Total Property & Equipment, net 11 46 33 Other Non-Current Assets 0 16 15 Total Assets $ 53 $ 108 $ 90 Notes Payable, Current Portion $ 1 $ 3 $ 5 Operating Lease Li