Bitcoin ATM Market Dynamics June 2017

During June 2017 bitcoin price stabilized at the $2500 levels. At the end of June price was $2432, which is approximately the same as it was at closing of May 2017.

Bitcoin price June 2017

While price of bitcoin stayed at highest level over history, installation of bitcoin ATMs also reached new highs during June 2017:

Period Start: 1233, Period End: 1324
Open: 120, Closed: 29, Net Growth: +91 (+7.4%)

This is higher than was the growth during May 2017 (+78 machines). Interesting fact that when bitcoin ATMs started to appear in 2013-2014 it took about 6-7 months to reach 91 machines around the globe, now this number of machines gets added monthly.

Change by Manufacturers

Name Start End Diff
Genesis Coin 601 648 +47 (7.8%)
General Bytes 221 248 +27 (12.2%)
Lamassu 219 233 +14 (6.4%)
BitXatm 30 33 +3 (10%)
Covault 7 10 +3 (42.9%)
BitTeller 2 3 +1 (50%)
BitAccess 48 47 -1 (-2.1%)
Coinplug 1 0 -1 (-100%)
Skyhook 20 18 -2 (-10%)

As in the last month Genesis Coin had the largest number of new bitcoin ATM locations. General Bytes is the second largest producer and there were 27 bitcoin machines of this manufacturer installed during June 2017. While General Bytes nominally installed fewer machines, than Genesis Coin, in relational values the growth was more significant as number of GB machines grew by 12.2%. Lamassu is the third largest manufacturer, and also is at third position for the growth in June with 14 new bitcoin ATMs installed.

Among manufacturers who reduced share are Bitaccess, which is now fourth largest bitcoin ATM brand. There was 1 closed location during June. Coinplug is a korean company, which had 1 machine left installed at Korea University in Seoul. Although machine is still located at place, it was reportedly not working since September or earlier last year. In June 2016 based on renewed feedback machine was removed from the site’s map. There were also two old Skyhook locations closed. As company closed their business and support for software long ago, there are only few machines left in operation, usually running customized software.

Change by Operators

Operators who increased bitcoin machines number:

Name Start End Diff
Cointed GmbH 17 28 +11 (64.7%)
Coinsource 109 118 +9 (8.3%)
Bitstop 32 40 +8 (25%)
Instacoin 37 44 +7 (18.9%)
RockItCoin 35 40 +5 (14.3%)
Bitcoin Depot 68 71 +3 (4.4%)
Athena Bitcoin 39 42 +3 (7.7%)
CoinCloud 18 21 +3 (16.7%)
HoneyBadger 7 10 +3 (42.9%)
Pay DEPOT LLC 7 10 +3 (42.9%)
ByteFederal LLC 6 9 +3 (50%)
Bitcoins4Me 2 5 +3 (150%)

Operator with highest number of new bitcoin machines installed in June 2017 was an Austrian operator Cointed. There were 11 new machines installed by them, which is roughly 65% growth of company’s locations per month. Company uses General Bytes BATM2 machines, which are compact, but at the same time fulfills the purpose of allowing customers to purchase bitcoins very easily.

Coinsource, the world’s largest bitcoin ATM operator, added 9 new locations over month with installations in Phoenix, Los Angeles and other cities.

Bitstop is large bitcoin machines operator in Florida has installed machines at 8 new locations reaching 40 locations in total.

Instacoin, a Canadian bitcoin ATM operator, also significantly increased its presence (+7 machines or 19% of their locations growth). Most of machines were installed in Toronto and around Toronto areas.

RockItCoin increases its presence. Last month they installed 4 machines, this month the company added 5 more locations, mostly increasing its presence in Indianapolis. RockItCoin also enabled Litecoin at all their bitcoin machines, which support now 2 coins, so that one can buy and also at some machines sell both bitcoin and litecoin.

Other operators from the top list increased positions by 3 new locations each. Fair to mention that there is a long-tail list of operator with 1 or 2 new locations added, which are not listed in the table above.

Athena Bitcoin is testing currently operations with Litecoin at 10 Atlanta area bitcoin machines. Bytefederal, Florida bitcoin ATM operator, since beginning of July activated also operations with Dash on its machines.

Operators with decreased number of machines:

Name Start End Diff
Landmark Bitcoin 7 6 -1 (-14.3%)
Kryptocash 2 1 -1 (-50%)
SATOS 1 0 -1 (-100%)
Caricoin Limited 1 0 -1 (-100%)

Landmark Bitcoin, UK based operator, has reduced its presence by 1 machine. Same with Australian Kryptocash, as machine was reportedly removed. SATOS and Caricoin Limited had earlier 1 machine each, but basically quit bitcoin ATM business for the moment.

Change by Countries

Name Start End Diff
United States 753 808 +55 (7.3%)
Canada 163 178 +15 (9.2%)
Austria 26 38 +12 (46.2%)
Spain 31 33 +2 (6.5%)
Netherlands 6 8 +2 (33.3%)
Dominican Republic 3 5 +2 (66.7%)
Taiwan 1 3 +2 (200%)
Finland 21 22 +1 (4.8%)
Czech Republic 16 17 +1 (6.3%)
Australia 12 13 +1 (8.3%)
Norway 0 1 +1
South Korea 3 2 -1 (-33.3%)
South Africa 1 0 -1 (-100%)
Jamaica 1 0 -1 (-100%)

The United States of America and Canada are again at the top of the chart. The U.S. is even with exact 55 new installations as in the last month. Canada grew by 15 more locations (9.2% increase). Austria did a good jump in number of locations (+12 or 46% increase). All is due to large scale installations by Cointed (see above section for operators).

Other countries on the positive side had 1 or 2 bitcoin machines number growth. Norway had its first installation in history. And the first machine was installed by a company named Mikrobank and bitcoin machine is located in Oslo.

On the negative side, South Korea reduced by 1 machine and still has 2 machines in the country. South Africa and Jamaica had only 1 machine before, and both were de-listed. So those countries are bitcoin ATM free now.

Altcoins Support

Name Start End Diff
Bitcoin 1233 1324 +91 (+7.4%)
Any altcoin 44 100 +56 (+127.3%)
Litecoin 36 91 +55 (+152.8%)
Ether 9 13 +4 (+44.4%)
Dash 5 7 +2 (+40%)
Dogecoin 5 5 0 (0%)

Support for altcoins at existing bitcoin machines increases very fast. During June 2017 altcoins were added to 56 machines (127% growth over month). At the end of month share of bitcoin machines also supporting altcoins reached 7.6% (previous month was 3.6%). These figures don’t include altcoins support turned on during the beginning of July, e.g. Bytefederal activated DASH trades on their 9 machines, which will be reflected in the stats of the next month. Out of all alternative cryptocurrencies, Litecoin got the most support (increased by 55 machines). This mostly happened because several large operators added support for LTC, e.g. Bitcoin of America has it activated on 19 of its 21 machines, RockItCoin added support of LTC trades on all their 40 bitcoin machines, Athena Bitcoin is testing currently LTC transactions support on their 10 machines out of 43 bitcoin ATMs they have in total, so more machines will potentially be adding support for LTC soon.

Concentration Change

By Operators

Country HHI (Change) CR3 (Change) CR5 (Change)
United States 5.1% (+0.0%) 29.5% (-0.6%) 40.5% (-1.0%)
Canada 12% (+0.5%) 54.5% (+0.5%) 65.7% (+1.3%)
United Kingdom 18% (+0.2%) 60.3% (+0.0%) 76.5% (+0.0%)
Austria 58.9% (+8.6%) 97.4% (+1.2%) 100% (+0.0%)
Spain 54.5% (-7.0%) 87.9% (-5.7%) 93.9% (-6.1%)
Finland 38% (-3.5%) 90.9% (-4.3%) 100% (+0.0%)
Australia 27.8% (+7.0%) 76.9% (+10.3%) 92.3% (+0.6%)

There is slight decrease of concentration on US market (top 5 operators lost 1% share), in Canada on opposite was slight increase of +1.3% top 5 operators share (due to installation of new machines mostly by existing large operators). UK didn’t have significant change.

The countries where the market share distribution changed were Austria — previously concentration was already high, as almost all machines in the country were run by top 3 operators. With new installations by Cointed this share only increased.

Spain and Finland had reductions in concentration of operators due to entry of new market participants, e.g. Cryptoforex and 3DSOMA in Spain, and Doers & Co. in Finland.

By Manufacturers

Country HHI (Change) CR3 (Change) CR5 (Change)
United States 53.8% (+0.2%) 90.8% (+0.0%) 95.3% (-0.2%)
Canada 30.7% (+1.1%) 84.9% (+2.6%) 96.6% (+0.3%)
United Kingdom 39.9% (-1.6%) 91.2% (-1.5%) 98.5% (+0.0%)
Austria 90% (+4.2%) 100% (+0.0%) 100% (+0.0%)
Spain 47.5% (-2.3%) 87.9% (+0.4%) 100% (+0.0%)
Finland 36% (-2.4%) 95.5% (+0.2%) 100% (+0.0%)

Manufacturer share has not significantly changed in the U.S. market. In Canada concentration increased for top 3 manufacturers, which can be explained by new installations from Instacoin, who is specializing on running Lamassu machines. In UK the share of top 3 manufacturers reduced by 1.5%, but stayed at the same level for top 5 manufacturers.

Overall, the concentration with respect to types of machines is very high (90-100% levels for machines represented by top 3 producers). The leading manufacturer varies from country to country, e.g. in US it is Genesis Coin, in UK it is General Bytes, in Canada it is Lamassu.

Summary

Bitcoin ATM installations increase in volume. June of 2017 had the most rapid increase in number of locations (+91). The previous largest was in February 2017 — locations grew by 86 new machines back then. A large portion of ATMs started support of altcoins, and this trend will potentially continue further, while Bitcoin has congested network and too high fees (although during June the average bitcoin transaction fee fell from ~$5 to ~$3, it is still at high level for many use-cases).

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