How to Invest in A Bitcoin ATM?

March 13th, 2018

Many business owners and investors are showing interest in Bitcoin ATMs. Since Bitcoin is becoming more popular, more and more BTM kiosks are popping up in all corners of the globe. Bitcoin ATM businesses are evolving everyday and getting more attention from business owners. Many people want to know how to invest in Bitcoin ATM? To help you, here are a few estimates that were provided by the top BTM operators around the world.

Lamassu at St John’s Innovation Centre in Cambridge

Lamassu Bitcoin ATM machine located in Cambridge has been in operation for more than one year, after which it was removed from its original location in November 2015. Now it is used for the purpose of the Duo Money project.

The owner of the Bitcoin ATM machine shared a status on his Twitter to make the announcement public. Experts evaluated that during the one year of data available that the machine only did £15K in volume. This means that at the rate of 3% to 5% the earnings were only £750.

This figure is estimated without taking into account all the costs for running and maintenance on the machine. This is an example where a Bitcoin ATM brought a financial loss to the operator. Considering the overall investment in the Bitcoin ATM machine, the loss is considered to be even bigger.

Only 150 users accessed the Bitcoin ATM machine in that one year period, which means that the machine was maybe used once every two days. Compared to other Bitcoin ATM locations this activity is considered to be very low. These cases are very rare.

Digital Mint operated Genesis Coin Machines

In an interview the owner of Digital Mint mentioned that the average rate of Bitcoin transactions at their different Bitcoin ATMs have began to drop. At one point there was around $200 per transaction when the company first started in October of$110 to $120 per transactions. This Bitcoin ATM has connected with more Bitcoin users, but customers purchase a small amount of Bitcoins, only around $20-$30

Another surprising metric that was mentioned that early 70% of customers are now coming back and buying more Bitcoins every month.

Lamassu estimation

A presentation was given at the company meetup in Switzerland in May 2017 and it was shared that the machine has been doing an average of around 10 to 30 transactions every day per machine. According to their data, a less popular location will get around 2 to 3 transactions per day, whereas a good location will bring in something like 50 to 100 transactions per day. The average transaction runs around $250.

According to the company, volume at an average location is around $75 to $225K, which is a very optimistic number.

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