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Revenue and costs of running a bitcoin ATM

Bitcoin ATM industry is growing fast. There are several new bitcoin machine installations worldwide daily. Existing bitcoin ATM operators increase number of machines in their networks, as well as new operators join the market. Even on the production side, there are new manufacturers developing their products and coming to the market with new bitcoin machine models targeting different segments and niches, e.g. recently were added BitTeller, Bitlox, BitConcept on our site.

Running a bitcoin ATM is an interesting business opportunity in the new era of digital currencies, however, sometimes the lack of information keeps people away as they don’t know where to start, or get any practical estimations of how much you can earn with a bitcoin ATM. In order to increase transparency Coin ATM Radar conducted a survey with a number of bitcoin ATM operators to find out what are current metrics of an average bitcoin ATM business.

Revenue and costs of bitcoin ATM

Before going any deeper we recommend to read:

Now back to survey. It was sent to 24 operators in total, 11 responded either in full or skipping some questions due to not wanting sharing info, although it was mentioned that none of info will be associated in any form to the company or person responding. Even limited info we received gives a good estimation of level of costs and earnings one should expect.

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Bitcoin ATM Profitability Part 2 — Real Examples

In the previous post we discussed the theoretical profit calculations for running a Bitcoin ATM. This post collects the real-life examples of operation metrics for different Bitcoin ATMs found in the internet.

Vancouver first Robocoin machine

Due to a lot of attention as the first Bitcoin ATM and also due to the high demand for bitcoins during the ATM launch, this machine did CAD 100,000 (~$95,000) in 348 transactions during the first eight days ($273 per transaction) (source). Later it was announced that Bitcoin ATM did roughly 1 million CAD (~$950,000) in transactions during the first 29 days with 1,576 buy and sell transactions ($603 per transaction).

The investment was paid back during the period less than a month in this case.

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Bitcoin ATM Profitability Part 1 — Theoretical Calculations

According to the data available the average fee taken by the operators for using the Bitcoin ATM is 5.2%. This rate could be used as a starting point for calculation. Depending on the ATM provider, there potentially could be running (license) fees additionally to the one-time ATM purchase cost, like in the case of Robocoin the operator will have to pay 1% fee to the ATM provider (unless the life-time license is purchased for a lump-sum).

On this page you can find a Bitcoin ATM profit calculator for getting the feeling about return on investment. It is assumed that buy and sell operations are equal and are inputted in aggregate fields: the transactions number and average transaction size. Not all the Bitcoin ATMs support the two-way operations, so sometimes it is only buy operations, which the operator may take into forecast calculation. In fact, the buy and sell transations are different in characteristics. According to Robocoin statistics, 1/3 of all operations are sell Bitcoin transactions and 2/3 are buy operations on average. Also the average size of operations varies — average buy is about $480, while average sell is $750.

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