Bitcoin ATM Profitability Calculations

March 23rd, 2018

The popularity of Bitcoin is increasing and along with it many BTM kiosks are popping up in popular locations around the country. The Bitcoin ATM business is turning out to be more profitable than expected. In this article, two scenarios are shared based on the investment made with Bitcoin ATM machines. This estimation is taking into account all possible parameters for a Indianapolis, Indiana Bitcoin ATM operation. In some cases, the volume of the transaction may be higher or lower, based on which will get you more profit on the investment. For instance, the first Bitcoin ATM machine in Vancouver became profitable in just one month. These details are shared for your understanding, and the numbers may be higher or lesser based on several other factors.

In this theoretical calculation, no promotional costs or marketing expenses have been factored in. Nor have legal licensing and paperwork expenses been taken into account, which may be different depending on the location where you are planning to set up the business. For instance, in the US the price may reach to $50K.

Bitcoin ATM Scenario One

In this particular scenario, a Indianapolis, Indiana Bitcoin ATM machine from the middle price range is taken. There are some models which are designed for two-way operations, whereas there are few machines supporting one-way operations. But the most interesting thing about this scenario is that all the machines covered here are more sound than cheap or low priced machines. All popular brands of Bitcoin ATM machines such as Lamassu, BitAccess, General Bytes, and BTC-O-MATIC are covered in this scenario.

For calculation reasons, the following assumptions are made: Indianapolis, Indiana Bitcoin ATM cost is around $6000, the monthly total number of transactions is around 100, and the average transaction volume is considered to be around $150. In this case, no extra expenses of cash logistics (rent, marketing, etc) for the Bitcoin ATM booth are considered. According to the calculations you can expect to earn $705 monthly as an owner.

Bitcoin ATM Scenario Two

This is the most expensive Indianapolis, Indiana Bitcoin ATM available on the market, its special feature is that it is similar to standard Bitcoin ATM. These Bitcoin ATM machines are known to have large capacity bill acceptors and comes with many different compliance features and two-way support operations.

For calculating the profitability in this category, the following considerations have been made:

The cost of the Bitcoin ATM is considered to be around $15,000, a one percentage license fee needs to be paid from all operations. The number of transactions every month is around 150, and there are additional sell operations. The average transaction size is assumed to be around $300, but sell operations are often bigger than all buy operations. Monthly location rent is considered to be around $200 and cash logistic expenses to be around $300 every month. As per calculation, the investment will be returned within 13 months, and this one Bitcoin ATM will bring around $1,165 net cash flow every month.

You can always create your own calculation figures based on the above example.

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