H.C. Wainwright raises Bitcoin Depot stock price target to $5

Published 20/05/2025, 12:26
H.C. Wainwright raises Bitcoin Depot stock price target to $5

On Tuesday, H.C. Wainwright analyst Mike Colonnese increased the price target for Bitcoin Depot (NASDAQ:BTM) to $5.00, up from the previous target of $4.00, while maintaining a Buy rating on the stock. The revision follows Bitcoin Depot’s robust financial performance in the first quarter of 2025, which surpassed consensus estimates, and the company’s optimistic revenue guidance for the second quarter. Since the announcement last Thursday, Bitcoin Depot’s shares have surged approximately 75%, in contrast to the Nasdaq’s flat movement during the same timeframe. According to InvestingPro data, the stock has shown remarkable momentum with a 69% return in the past week alone, though the RSI suggests the stock is currently in overbought territory.

Bitcoin Depot’s recent strategy to optimize its kiosk operations and its expansion efforts are showing positive results. The company reported significant revenue growth, an increase in gross margins to 24.2%, and a substantial rise in operating cash flows, reaching $16.3 million in the first quarter, a significant leap from $1.3 million in the same quarter of the previous year. With an EBITDA of $50.7 million in the last twelve months, InvestingPro analysis reveals the company trades at an attractive EV/EBITDA multiple of just 2.1x, suggesting potential upside opportunity. Subscribers can access 10+ additional ProTips and comprehensive financial metrics for deeper analysis.

The company’s market presence is also expanding, with 8,614 Bitcoin ATMs currently deployed, capturing a leading 22% market share according to coinatmradar.com. This is an increase from 8,483 ATMs at the end of the first quarter. Bitcoin Depot has around 2,000 additional kiosks ready for deployment in upcoming quarters, which is expected to drive future organic growth without the immediate need for capital investment to acquire new machines. With a current market capitalization of $188.6 million and analyst price targets ranging from $4 to $7, the company’s expansion strategy appears well-positioned to capture additional market share.

The company’s installed ATM fleet is anticipated to generate increasing revenues and cash flows as these deployments mature, with roughly 37% of the current fleet having been installed for less than one year. On the international front, Bitcoin Depot’s management has hinted at plans to launch operations in two new countries within 2025, following successful expansion efforts in Australia.

Bitcoin Depot’s strong operating cash flows and low capital expenditure requirements may also lead to the initiation of a dividend in 2025, potentially attracting a broader investor base. H.C. Wainwright reaffirms its positive stance on Bitcoin Depot, considering it a stock with untapped potential within the cryptocurrency sector.

In other recent news, Bitcoin Depot reported a robust financial performance for the first quarter of 2025, with revenue increasing by 19% year-over-year to $164.2 million. The company achieved a net income of $12.2 million, marking a significant turnaround from a loss in the previous year. Adjusted EBITDA also saw a notable rise, growing 315% year-over-year to $20.3 million, surpassing both company guidance and analyst expectations from Northland. Following these strong earnings results, Northland analysts upgraded Bitcoin Depot’s stock, raising the price target from $3.25 to $5.00. The upgrade reflects confidence in the company’s strategic initiatives and operational performance.

Bitcoin Depot’s expansion efforts include the deployment of over 100 new kiosks in Australia, contributing to its significant network growth. The company currently operates 3,200 kiosks that are still ramping up, with an additional 2,000 kiosks in inventory to support future expansion. Looking ahead, Bitcoin Depot has provided guidance for low to mid-single-digit revenue growth for the second quarter of 2025. Northland considers this forecast conservative, given the company’s strong year-over-year comparisons and seasonal factors. The company also continues to explore international expansion opportunities and regulatory advancements, particularly in New York State, to strengthen its market position.

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