Lux Vending aka Bitcoin Depot, the world’s largest crypto ATM company with over 7,000 machines operating in North America, plans to go public through a US$885mln reverse merger with special purpose acquisition company (SPAC) GSR II Meteora.
According to a press release, the deal was unanimously approved by Bitcoin Depot and GSRM’s directors and is expected to close by the first quarter of 2023, subject to regulatory and stockholder approvals.
“Today marks an important milestone for Bitcoin Depot,” said founder Brandon Mintz. “We are always looking to expand our reach so as many people as possible can access cryptocurrency to control their own money and conduct easier and simpler financial transactions.”
Since being established in 2016, Bitcoin Depot’s ATMs have facilitated US$1.2bn worth of transactions, while net income for the last 12 months came to US$6mln.
The company will trade on the NASDAQ exchange under the BTM ticker symbol.
Bitcoin Depot is being advised on the deal by Kirkland & Ellis.
SPAC boom and bust
Also known as “blank check companies”, SPACs gained huge popularity in the past few years as an easy way to take a company public by circumventing the traditional IPO process.
SPACs deals accounted for over half of all IPOs in 2021.
However, US law firm White & Case noted that SPAC deals have dropped off significantly in 2022, accounting for only 13% of IPOs so far.
SPACs also have a less-than-stellar track record.
High-profile deals involving US bakery chain Panera and trading platform failed to materialise this year, while the de-SPAC Index is down around 80% from its 2021 peak.