Bitcoin Depot Inc.

Good morning and welcome to Bitcoin Depot's second quarter 2024 conference call. My name is Sarah and I'll be your operator today. Before this call, Bitcoin Depot issued its financial results for the second quarter ended June 30, 2024 in a press release. A copy 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 and CFO Glenn Leibowitz. Following their remarks, we will open the call for questions. Before we begin, Cody Slaw from Gateway Group will make a brief introductory statement. Mr. Slaw, please proceed.

Thank you, Operator. Good morning, everyone. 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 our forward-looking statements, please see the disclosures in our earnings release and public filings made with the SEC. We disclaim any obligation or 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 measures and encourage you to read our disclosures and the reconciliation table to applicable GAAP measures and our earnings release carefully as you consider these metrics. We refer you to our filings with the SEC 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 SEC filings for free by visiting the SEC website at cc.gov. I'd like to remind everyone this call is being recorded. It 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 IR website. Now I will turn the call over to Bitcoin Depot's CEO, Brandon Mintz. Brandon?

Thanks, Cody, and good morning, everyone. Thank you for joining our second quarter 2024 conference call. I'd like to briefly discuss some recent developments across our business and what gives us confidence in the year ahead. We built on our momentum in the second quarter with sequential growth in revenue, net income, and adjusted EBITDA. We continued to focus on our growing kiosk network and building a robust pipeline of of major regional and national retail partners to enhance their footprint. In fact, we proudly announced just last month that we achieved and exceeded our ambitious goal of deploying over 8,000 Bitcoin ATMs five months ahead of schedule with 8,180 kiosks. This is a testament to the relentless dedication of our team and our strategic initiatives aimed at expanding Bitcoin's accessibility. Building on the momentum we've already cultivated in the first half of 2024, we have no intention of slowing down as we gear up to provide even more customers with seamless access to the crypto ecosystem. This, along with our acquisition of over 2,700 kiosks in 2024, will increase our total kiosk fleet size to over 10,400 kiosks once all kiosks are delivered, furthering our industry-leading market share. Over the past three quarters, we have focused heavily on relocating underperforming BTMs to new locations, which historically has shown to increase average profitability per kiosk over time. While we do not get that benefit immediately, over time, the increase in profitability typically continues to grow as the BTMs ramp up. While it's not apparent in our consolidated numbers for the quarter, The relocation strategy is working and it's showing a lot of growth potential based into the business as it did today. For example, in June of this year, the average monthly revenue per kiosk for BTMs that have been installed for 12 to 24 months was 85.6% higher than BTMs installed for less than 12 months. In this calculation, the BTMs installed for less than one year averaged roughly four months of operation since the time of install at the location. Other key performance indicators that tell us our kiosk optimization process is working include the consistency in returning user transaction counts and the recent list and median transaction size. It's important to note that while we regularly optimize our kiosk footprint, our repositioning efforts will likely slow in the coming quarters. This year, we are focused on footprint growth to expand our market share and competitive positioning. As of the end of Q2 2024, around 3,000 of our kiosks have been installed for less than one year and thus still need more time to ramp up to their full potential. Additionally, once we receive delivery of all of our purchased and ordered kiosks, we will reach an install suite of roughly 10,000 total BCMs by the time they are all installed. This number accounts for about 400 kiosks in transit or undergoing maintenance or repair at any given time. Between the ramp of our newly installed kiosks and the kiosks we will receive over the course of 2024 from orders and purchases, there is very large growth potential based into the business as it sits today. Furthering our North American expansion in the second quarter, we announced the new retail partnership with Nerea Energy Corporation, a leading convenience store brand based in the Northeast with operations across 175 company-owned C-stores and fuel retailers. Beginning in June 2024, Bitcoin Depot deployed its kiosks into 57 Nerea locations across Massachusetts, Maine, and New Hampshire. We also continue to strengthen our profit share program with Sopris Capital. In July, we announced the sale of 200 additional BTMs to Sopris. As a reminder, our profit sharing partners like Sopris benefit from our expertise in operating BTMs and integration with BitAccess Software, the premier software suite for Bitcoin ATM operations. Our profit share program provides a capital-efficient strategy for Bitcoin Depot's 10-year expansion this year as we aim to have the largest infill fleet of Bitcoin ATM in the company's history. Given the sequential growth in our financials, our strong cash flow dynamics, and the continued buildup in our sales pipeline, we are well positioned to execute our growth plan. As a reminder, this plan comprises of three main categories. First is international expansion. We have shipped over 200 kiosks for our upcoming Australia launch, and we are anticipating regulatory approval. Additionally, Puerto Rico is fully operational with over 100 kiosks installed. Second, we are focusing additional attention on the profit share program to grow our footprint and profitability. We have a strong pipeline of opportunities that can provide a capital efficient strategy for Bitcoin Depot to continue expanding this year while enhancing profitability. Third, we will continue to pursue additional licenses to expand our access points for customers. New York State remains the largest potential growth opportunity for our kiosks in the U.S., and we are in regular dialogue with regulators to secure a license to operate in the state. With no existing BCM operators in the state today, according to pointatmradar.com, We believe our opportunity for kiosk deployment will be substantial and our unit economics would be strong. At this moment, we do not have any updates on the expected timeline for approval, but hopefully it could happen at some point in 2024. Lastly, we will continue to explore growth opportunities internationally beyond recent announcements on our expansion in Puerto Rico and Australia. While our focus remains within North America, where approximately 90% of BPMs globally are located, we believe the growing adoption of cryptocurrency will offer us an opportunity to establish a market leading presence outside of North America. While it's still early, we are encouraged by the pace of new deployments and pipeline of retail opportunities we have identified internationally. In summary, we are encouraged by our recent momentum and remain well positioned to execute our strategic goals this year. Now, I'll turn the floor over to our CFO, Glenn Lebowitz, who will provide more in-depth insights into our financial performance and business outlook. Glenn?