Bitcoin Depot Inc.

good morning and welcome to bitcoin depot's second quarter 2023 conference call my name is jordan and i'll be your operator today before this call bitcoin depot issued its final results for the second quarter ended june 30 2023 in a press release a copy of which will be furnished in a report on form 8K filed with the SEC and will be available in the investor relations section of the company's website. Joining us on today's call are Bitcoin Depot CEO, Brandon Mintz, CFO, Glenn Lebowitz, and COO, Scott Buchanan. Following their remarks, we will open the call for questions. Before we begin, Alex Cofton from Gateway Group will make a brief introductory statement. Mr. Cofton, please proceed.

Great. Thank you, operator. Good morning, everyone, and welcome to Bitcoin Depot's second quarter 2023 conference call. Before management begins their formal remarks, we would like to remind everyone that some statements we're making today may be considered forward-looking statements under securities laws and involve a number of risks and uncertainties. As a result, we caution you that there are a number of factors, many of which are beyond our control, which could cause actual results and events to differ materially from those described in the forward-looking statements. For more detailed risks, uncertainties, and assumptions relating to a forward-looking statement, please see disclosures in our earnings release and public filings made with the Securities and Exchange Commission. We disclaim any obligation or any undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. We will also discuss non-GAAP financial metrics and encourage you to read our disclosures and the reconciliation tables to applicable GAAP measures in our earnings release carefully as you consider these metrics. We refer you to our filings with the Securities and Exchange Commission for detailed disclosures and descriptions of our business, as well as uncertainties and other variable circumstances, including but not limited to risks and uncertainties identified under the caption, Risk Factors in Our Recent Filings. You may get Bitcoin Depot's Securities and Exchange Commission filings for free by visiting the SEC website at www.sec.gov. I would like to remind everyone that this call is being recorded and will be made available for replay via a link available in the Investor Relations section of Bitcoin Depot's website. A supplemental earnings presentation highlighting our Q2 performance has also been made available on our website. Now I will turn the call over to Bitcoin Depot's CEO, Brandon Mintz. Brandon?

Thanks, Alex, and good morning, everyone. It's an exciting moment for us to be hosting you for Bitcoin Depot's first earnings call as a public company after closing our business combination with GSR2 Meteora Acquisition Corp. and listing on the NASDAQ in early July. Before sharing some recent highlights, I want to briefly introduce the company for those of you who are new to our story. I started Bitcoin Depot in 2016 after having difficulty in purchasing Bitcoin from an online exchange. The experience was extremely frustrating and ultimately after a few weeks, I still didn't have my Bitcoin. I found another way to buy Bitcoin with cash that was easier, quicker, and more secure, which ultimately inspired me to start Bitcoin Depot. We started the company with just a few machines and have expanded our footprint over the last seven years to become the largest Bitcoin ATM operator in North America with approximately 6,350 kiosk locations across 49 U.S. states and 10 Canadian provinces, supporting approximately 24,000 monthly active users. Our mission is simple. We aim to bring Bitcoin to the masses. We do this by allowing users to convert cash to Bitcoin at our kiosks or at thousands of name brand retail locations through our BD checkout offerings. which is our no hardware solution. Since 2016, we have completed $1.7 billion of total transaction volume, over 2.9 million transactions. And these figures continue to grow as we expand our footprint. Let me now talk about our users and why they use our products to purchase Bitcoin. We primarily support the cash-based economy and the underbanked population in very convenient ways. According to survey data, about two-thirds of our users say that they are purchasing Bitcoin to be able to use it for online purchases and money transfer or remittances. So many of our users either don't have bank accounts or choose not to have bank accounts, which limits their ability to purchase Bitcoin from an online exchange. This really just shows that the customer base for Bitcoin Depot is very different than that of an online exchange. We know that underbanked and unbanked users in the cash economy have to physically go out many times to use services such as prepaid cards, bill pay kiosks, money remitters, or check cashing services to manage their financial needs. But now people in this population segment can efficiently complete nearly all of those alternative financial services transactions from smartphones using Bitcoin. We also offer amazing customer support that is very quick to respond over email, over text or phone calls and chat, so we really provide a more personalized and quick experience than many other industry options to purchase Bitcoin. The process for purchasing Bitcoin through our kiosks or our BD checkout program is very simple, and users will have access to their purchased Bitcoin in minutes. For users at our kiosk locations, they complete KYC verification, scan their QR code from their Bitcoin wallet app using the Bitcoin Depot app or another Bitcoin wallet of their choice, enter cash, and then the user will receive Bitcoin to their wallet immediately. We, of course, recommend the Bitcoin Depot wallet because it is completely self-custodial, which means we don't maintain custody of users' funds within this wallet. Only the user has access to their Bitcoins. The process for BD checkout is also really straightforward. Users first download our mobile app, place an order to buy Bitcoin, complete KYC verification, generate a barcode on the app, and scan it at the register, hand over cash, and then convert to Bitcoin in their Bitcoin Depot wallet app. We've seen meaningful customer engagement since 2016, and our median transaction size has increased quite rapidly as well. During the second quarter, the median transaction size is $200, which is an 18% increase compared to the second quarter of 2022. We typically see our kiosks ramp up in volume over time as they continue to attract customers and generate additional volume. From our kiosk cohort analysis, we found that transaction volumes have accelerated from their first year in operation. And this is a trend we continue to see with our new deployment from relocated kiosks as well. This engagement has also translated to very strong revenue growth, as we delivered record quarterly revenue at $197.5 million in revenue for the second quarter, an 18% increase compared to the second quarter of 2022. Importantly, at 19%, we continue to maintain our industry-leading market share, Customers are attracted to the accessibility and user experience of Bitcoin ATMs as an entryway into the broader digital financial ecosystem. Our kiosks are located in convenient locations across the country through existing partnerships with 40 major retailers, including major national and regional retailers. Our largest retail agreement is with Circle K, where we're in close to 1,500 of their stores. But with Circle K operating in roughly 15,000 stores globally, there's a lot of room to grow within this retailer. In addition to our kiosk footprint, we also allow consumers to purchase Bitcoin right at the counter at approximately 5,200 participating retail locations through our BD checkout program. We offer this service through a partnership with a leading global payment supplier, and it allows us to expand our access points without deploying a physical kiosk. In aggregate, our kiosks and BD checkout access points are located in zip codes addressing over 51% of the U.S. population today. Ultimately, our goal is to become the most trusted, quickest, and most efficient way to purchase Bitcoin with cash across the largest network of retail locations possible. Our current pipeline of expansion opportunities remains very strong. Over the last several months, we've announced multiple partnerships with convenience store brands and recently expanded our BD checkout program into two additional states. We're excited about the numerous growth opportunities ahead and are well positioned to support mass crypto adoption as the world's leading Bitcoin ATM network. I'll now turn things over to our CFO, Glenn Leibowitz, to update you on our financial performance and business outlook. Glenn?