Bitcoin ATM Market Dynamics May 2017

May 2017 was a great month for all cryptocurrencies growth. Bitcoin also grew substantially in price ($2400 at the end of May).

Bitcoin price May 2017

This has driven a lot of new demand and new users to cryptocurrency world. New traffic to existing bitcoin ATMs incentivized new installations. Here is the stats for May 2017:

Period Start: 1158, Period End: 1236
Open: 95, Closed: 17, Net Growth: +78 (+6.7%)

Compared to April, the growth speed almost doubled.

Change by Manufacturers

Name Start End Diff
Genesis Coin 563 598 +35 (6.2%)
General Bytes 195 217 +22 (11.3%)
Lamassu 206 221 +15 (7.3%)
Covault 0 3 +7
CoinOutlet 6 10 +4 (66.7%)
BitXatm 30 31 +1 (3.3%)
Bitcoin D.A.V.E. 2 3 +1 (50%)
LocalBitcoins 14 13 -1 (-7.1%)
Robocoin Kiosk 6 5 -1 (-16.7%)
BitAccess 53 51 -2 (-3.8%)
Bitlish 3 0 -3 (-100%)

Genesis Coin is leading with respect to number of new installations (over 30, similar to last month). At the same time many General Bytes and Lamassu bitcoin machines were installed (37 altogether, compared to 12 in last month).

Covault is a new type of bitcoin ATMs added on the site recently, and there were 7 known installations in New Jersey area during month.

CoinOulet increase happened in Japan, where following the market demand company installed and operates their own machines.

Among the machine types which reduced presence Bitlish closed 3 locations. Those are three locations previously introduced in St. Petersburg, Russia. So now the company  abandoned Russian market, whether temporarily or permanent is not clear.

Change by Operators

Operators who increased bitcoin machines number:

Name Start End Diff
Bitcoin Depot 55 68 +13 (23.6%)
Pay DEPOT LLC 0 7 +7
Bitnational 23 29 +6 (26.1%)
Instacoin 32 37 +5 (15.6%)
RockItCoin 31 35 +4 (12.9%)
CoinOutlet 3 7 +4 (133.3%)
Coinsource 106 109 +3 (2.8%)
BitcoinPlug 12 15 +3 (25%)
BCB ATM 7 10 +3 (42.9%)

Absolute leader with 13 new locations added in May is Bitcoin Depot. The company grew substantially and at the moment is the second largest bitcoin ATM operator in the world.

Pay DEPOT is a new operator working solely with new type of bitcoin ATMs — Covault machines. Company has plans to install more machines in the future.

Interesting to see that on top positions in this month were not only US, but also Canadian companies: Bitnational and Instacoin, who increased their networks by 6 and 5 machines respectively.

Rockitcoin is a country wide operator, who grows stable from month to month, increased its locations number by 4 new places.

As mentioned before CoinOulet as operator entered Japanese market and installed 4 machines there.

Coinsource as well as Los Angeles large bitcoin ATM operator BitcoinPlug added 3 new locations each this month.

UK-based company BCB ATM installed three new machines, although in absolute number it might be not a lot, however, company increased its network by more than 40%, which is a good achievement.

Operators, which decreased number of machines:

Name Start End Diff
EasyBit 27 26 -1 (-3.7%)
Xagau 2 1 -1 (-50%)
BlockchainLab, Inc. 2 1 -1 (-50%)
Bitlish 3 0 -3 (-100%)

Change by Countries

Name Start End Diff
United States 699 754 +55 (7.9%)
Canada 153 165 +12 (7.8%)
United Kingdom 61 68 +7 (11.5%)
Japan 11 15 +4 (36.4%)
Slovakia 4 6 +2 (50%)
Czech Republic 15 16 +1 (6.7%)
Netherlands 5 6 +1 (20%)
Dominican Republic 2 3 +1 (50%)
South Korea 4 3 -1 (-25%)
China 3 2 -1 (-33.3%)
Russian Federation 3 0 -3 (-100%)

The top 3 countries with highest number of new bitcoin machines installations in May 2017 are the same countries, which have the largest number of ATMs already installed: USA (growth rate +7.9%), Canada (+7.8%) and UK (+11.5%). Japan has four new installations, but all are coming from the same operator — CoinOutlet.

Altcoins Support

Name Start End Diff
Bitcoin 1158 1236 +78 (+6.7%)
Any altcoin 23 44 +21 (+91%)
Litecoin 14 36 +22 (+157%)
Ether 12 9 -3 (-25%)
Dash 4 5 +1 (+25%)
Dogecoin 4 5 +1 (+25%)

Support for altcoins at bitcoin ATMs is still at low level — only 3.6% of all bitcoin ATMs support at least one alternative cryptocurrency. However, the trend shows that more and more operators activate other cryptocurrencies with most growth in Litecoin. At the same time, it is important to understand that all bitcoin ATMs are already a very convenient way to get access to altcoins. The most diffucult part is to convert traditional fiat money to cryptocurrency, and then exchanging bitcoins to other altcoins is relatively easy. As supporting several coins to be sold at the machine is costly for operators (liquidity in every coin has to be locked) which makes it more expensive to operate business.

Interesting solution is provided by Bitcoin D.A.V.E. manufacturer, as Shapeshift has been integrated into software of machine. Which makes it possible to sell any alternative crytpocurrency and only holding funds in Bitcoin, which means liquidity requirements are kept low.

Bitcoin D.A.V.E. Shapeshift
Bitcoin D.A.V.E. machine with Shapeshift integration

Concentration Change

By Operators

Country HHI (Change) CR3 (Change) CR5 (Change)
United States 5.2% (-0.2%) 30.1% (+0.2%) 41.6% (-0.5%)
Canada 11.2% (+1.0%) 53.3% (+3.0%) 63.6% (+2.2%)
United Kingdom 17.8% (-0.2%) 60.3% (+1.3%) 76.5% (-0.6%)
Spain 57.8% (0%) 90.6% (0%) 96.9% (0%)
Austria 49.1% (0%) 96% (0%) 100% (0%)

In Canada concentration of bitcoin ATM operation increased over May 2017. Top 3 operators run 53% of all machines now and top 5 operators control 64%. This is mostly a result of increase in number of machines of large Canada’s operators: Bitnational and Instacoin (see Change by operators section above).

By Manufacturers

Country HHI (Change) CR3 (Change) CR5 (Change)
United States 54% (-1.7%) 91.1% (+0.2%) 95.7% (-0.3%)
Canada 29.2% (+0.5%) 80% (+1.6%) 96.4% (+0.9%)
United Kingdom 42.3% (-1.1%) 94.1% (-2.6%) 100% (0%)
Spain 49.8% (0%) 87.5% (0%) 100% (0%)
Austria 85.3% (0%) 100% (0%) 100% (0%)

Similarly concentration in type of machines run in Canada increased as well. Instacoin installs only Lamassu software machines, while Bitnational have added Genesis Coin machines, which were already top used machines in Canada.

Summary

Bitcoin ATMs number increased substantially in May, which can be a result of increased demand for bitcoins from general public. This month was an increase for machines supporting altcoins (~2x growth in such machines share). Fast growing countries are the U.S., Canada and United Kingdom, where bitcoin ATM market is already well represented by many players.

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