Global Bitcoin ATM Count Declines, Putting an End to 10-Month Period of Continuous Growth

Bitcoin ATM Numbers Decline Globally, Ending 10 Months of Growth


By Harvey Hunter
Updated on:
May 21, 2024 15:22 EDT
|
Reading time: 1 min


After experiencing 10 months of continuous growth, the number of Bitcoin ATMs worldwide has declined in May, putting an end to the expansion trend that began in July 2023. The decrease in numbers was mainly driven by the removal of over 300 ATMs from service in the United States, which accounts for more than 80% of the global Bitcoin ATM market.
Sharp Decline in Bitcoin ATMs in the US
According to data from Coin ATM Radar
, the total number of Bitcoin ATMs globally dropped from 37,902 to 37,621 in May. The US witnessed the largest decline, with a loss of 302 machines, while Canada, the second-largest market for Bitcoin ATMs, lost 28 machines. Although the reasons behind this sudden decline are unclear, law enforcement agencies in the US have been actively targeting ATMs involved in illegal activities like extortion and scams.


In recent years, scams associated with Bitcoin ATMs
have become increasingly prevalent
, coinciding with the surge in Bitcoin usage. Last year, a major manufacturer,
General Bytes, suffered a significant security breach
that resulted in the theft of $1.5 million worth of Bitcoin from its operators.
As of now, 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 swiftly emerged as the
third-largest active network of Bitcoin ATMs
after the US and Canada, with 1,041 (2.8%) machines.
Impact on Bitcoin Prices
Despite the decrease in Bitcoin ATM numbers, Bitcoin Depot, the largest Bitcoin ATM operator in the US, reported consistent earnings in 2024. The company’s annual report on April 15th, known as the 10-K, revealed that its revenue is not dependent on the price of Bitcoin.
Bitcoin Depot mentioned
that the majority of its users utilize its services for legitimate purposes, such as money transfers, international remittances, and online purchases, rather than speculating on the price of Bitcoin.
Bitcoin Depot also highlighted that the lack of correlation between revenues and the BTC price is partly due to the nature of the services provided. Therefore, this decline should not be interpreted as a bearish indicator for the overall crypto market, but instead, it is likely attributed to external factors.
For guidance on how to use Bitcoin ATMs, please consult our
2024 Guide
.
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