Bitcoin Depot Inc.

Good morning and welcome to Bitcoin Depot's third quarter 2024 conference call. My name is Dustin and I will be your operator today. For this call, Bitcoin Depot issued its financial results for the second quarter ended September 3rd, 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 Mitz, and CFO, Glenn Leibowitz. Following their remarks, we will open the call for questions. Before we begin, Cody Slough from Gateway Group will make a brief introductory statement. Mr. Slough, 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 Securities and Exchange Commission. 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 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 sec.gov. I'd like to remind everyone this call is being recorded and will be made available for replay via link in the investor relations section of Bitcoin Depot's website. A supplemental earnings presentation highlighting our Q3 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 attending our third quarter 2024 conference call. I'd like to briefly discuss some recent developments across our business and what gives us confidence in the quarters ahead of us. During the quarter, we continue to focus on growing our kiosk network, optimizing our existing fleet, and building a robust pipeline of regional and national retail partners to enhance our footprint. We ended the quarter with approximately 8,300 active machines surpassing our goals and reflecting our team's execution and vision to enhance Bitcoin's accessibility. Over the past year, we have continued to focus on relocating underperforming BTMs to new locations, which historically has shown to increase average profitability per kiosk over time. We continue to progress this initiative during the quarter. Today, 3,600 of our kiosks have been installed for less than one year. This is an important metric as we don't experience an immediate bump in profitability. On average, we typically reach break-even in four to five months on relocation expenses. So while it's not apparent in our consolidated financials, the relocation strategy is working. For example, median transaction size continues to rise on a year-over-year basis. Furthering our North American expansion in the third quarter, we recently signed a retail partnership with a prominent convenience store chain in the southwestern U.S. with more than 80 locations across Texas, New Mexico, Oklahoma, and Kansas. Through this partnership, Bitcoin Depot will install Bitcoin ATMs in roughly 50 locations beginning this month in Texas, providing customers with convenient access to purchase Bitcoin and participate in the broader digital financial system. We have seen continued interest in our profit share program as we have seen an expansion of 433 Bitcoin ATMs in this program since the start of Q3 of this year, which brings us to over 1,000 Bitcoin ATMs in the program today. As a reminder, our profit share partners benefit from our expertise in operating BPMs 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 to continue its expansion this year as we aim to have the largest installed fleet of Bitcoin ATMs in the company's history. Heading into the final quarter of the year and setting our sights on 2025, I would like to remind our stakeholders of our growth plan, which comprises of three main categories. First is international expansion. We have shipped over 300 kiosks for upcoming Australia launch, and we are anticipating regulatory approval imminently. We are expecting the launch in Australia to commence in 2025, and we are also targeting additional countries for further expansion. 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 retail opportunities we have identified in Australia. Second, we are focused on deploying the remaining kiosks in our inventory from our large purchases earlier this year. We have 2,000 kiosks in our inventory still available to deploy, which should allow us to reach a fully installed suite of 10,000 kiosks. Third, we will continue to pursue New York State. New York State remains as one of the largest potential geographical growth opportunities for our kiosks, and we are in regular dialogue with regulators to secure a license to operate in the state. At this moment, we do not have any updates on the expected timeline for approval, but are hopeful this can happen in the first half of 2025. According to coinatmradar.com, there are still no physical Bitcoin ATMs in the state of New York. Over the past year, Bitcoin Depot has faced regulatory challenges in California, Connecticut, Vermont, and Minnesota that has affected the business financially. This has created a year-over-year decline in revenue and EBITDA. However, today we are much more prepared to address how states might approach regulating our industry, and this gives us a greater influence when regulation may be drafted. We believe 2024 is the low point in our business, and there is much more growth ahead. Even considering 2024 as the low point in our business, we generated $17.25 million of operating cash flow in just the first nine months of this year. We have been exploring with our board the best way to utilize our cash to create the most value for shareholders, and we believe starting a cash dividend at some point in 2025 will allow shareholders to benefit. At this time, we are not aware of any other U.S. company whose primary business is in the cryptocurrency industry offering a dividend. And it's possible Bitcoin Depot could become the first cash dividend paying company in the cryptocurrency services industry. Additionally, we are excited about the growth in the Bitcoin price recently, and we believe that positive momentum can be helpful for our business. With that being said, as of the end of Q3 2024, we are happy to announce that we are currently holding 11.3 Bitcoin, and our separate investment wallet. In summary, we are encouraged by our recent momentum and remain well-positioned to execute our strategic goals. Now I'll turn the floor over to our CFO, Glenn Leibowitz, who will provide more in-depth insights into our financial performance and business outlook. Glenn?