Bitcoin Depot Surges 250.6% YTD: Is it Too Late to Buy BTM Stock?

Core Insights - Bitcoin Depot Inc. (BTM) shares have surged 250.6% year-to-date, outperforming the industry, Zacks Finance sector, and S&P 500 index [2][11] - The company has benefited from rising cryptocurrency demand and favorable regulatory conditions under the Trump administration [6][16] - Bitcoin Depot's revenue growth is primarily driven by its BTM Kiosks, which accounted for approximately 99.7% of total revenues [8][10] Revenue Growth and Business Model - Revenues have been increasing, with a decline in 2024 but a rise in 2023, and continued growth in Q1 2025 year-over-year [7][13] - As of March 31, 2025, Bitcoin Depot had 8,463 BTM Kiosks installed across the U.S., Canada, and Puerto Rico, with a median transaction size of $300 [8] - The launch of BDCheckout in 2022 allows customers to load cash at retail locations, expanding the client base without significant upfront costs [9][10] Strategic Initiatives - The company aims to increase BDCheckout transaction volume to reduce capital expenditures and achieve profitability [10] - Bitcoin Depot has entered into franchise profit-sharing arrangements and secured deals to install kiosks in over 900 locations, diversifying its presence [12][13] - The acquisition of Pelicoin, LLC's assets aims to strengthen its market position in the Gulf South region [10] Financial Performance and Estimates - As of March 31, 2025, Bitcoin Depot had cash and cash equivalents of $35 million and total debt of $55.5 million [18][19] - The Zacks Consensus Estimate for 2025 and 2026 earnings per share is 46 cents and 51 cents, respectively, indicating year-over-year growth of 176.7% and 10.3% [25][27] - The company's 12-month forward P/E ratio of 11.78X is lower than the industry average of 21.63X, suggesting the stock is undervalued [20][24] Regulatory Environment - Favorable regulatory developments under the Trump administration are expected to boost cryptocurrency adoption [16][18] - Recent clarifications from the FDIC and executive orders from Trump indicate a supportive environment for cryptocurrency firms [17][18] Competitive Landscape - Bitcoin Depot faces competition from peers like Coinbase and BTCS, which may impact its pricing power [28] - The company operates in a highly regulated industry, facing potential legal challenges that could affect operations [28]