This Bitcoin Stock Fell 76% but Wall Street Expects a 147% Recovery

By Trey Thoelcke Published Mar 13, 9:10AM EDT

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This Bitcoin Stock Fell 76% but Wall Street Expects a 147% Recovery — © denphumi / iStock via Getty Images

With Bitcoin trading at record highs and the huge amount of interest in Bitcoin exchange-traded funds, it is clear that enthusiasm about the prospects for cryptocurrencies remains strong. The question for investors who have been cautiously waiting to see if Bitcoin was a fad, or those who are simply late to the party, is whether it is too late now to enter the fray. Have all the profits in Bitcoin-related stocks been made?

There may still be opportunities to be found. One example is Bitcoin Depot Inc. (NASDAQ: BTM), an Atlanta-based cryptocurrency trading company that went public less than a year ago. Its share price tumbled after the IPO, but it is projected to soar in the coming year. So what’s up here? Let’s have a look.

A Big Bounce for Bitcoin Depot?

Is this stock a Bitcoin winner?

Price Change	Target Price	Est. One-Year Gain
−76.2%	$6.13	147.2%

Bitcoin Depot owns and operates a network of cryptocurrency kiosks in North America. It allows users to buy and sell Bitcoin, Litecoin, and Ethereum cryptocurrencies. It also engages in the sale of cryptocurrency to consumers at a network of retail locations through its BDCheckout product offering and via its website over-the-counter trade. This leading Bitcoin ATM provider has thousands of locations in North America.

The company’s market cap is about $33 million. That is much less than of fellow fintech companies Coinbase Global Inc. (NASDAQ: COIN | COIN Price Prediction) and Robinhood Markets Inc. (NASDAQ: HOOD).

Since the beginning of the year, Bitcoin Depot has added 13 new sales representatives in the United States, deployed 940 ATMs with a national convenience store operator, and purchased 400 additional ATMs and ordered 500 more.

Its fourth-quarter and 2023 report is scheduled for March 25. Investors will be looking for continued revenue growth and will have an eye on forward guidance and the company’s expansion plans.

Last year, management launched a $10 million share repurchase program that ends in June 2024. In December, CEO Brandon Mintz made the Forbes 30 under 30 finance list.

The shares were last seen changing hands for 23% or so lower than at the beginning of the year. Most of that slide came in early January. Since the IPO, shares have traded as high as $11.15 apiece and as low as $1.88.

So, the stock has not fared well. But let’s see where the share price may go from here.

Who Is Rooting for This AI Stock?

Analysts have high expectations.

Four analysts have price targets that range from $3.50 to $9.00, all above the current share price. Reaching the high price would be a gain of almost 269% for the stock. The consensus recommendation is to Buy shares. Note though that the most recent initiation, in December, came with a Market Perform rating and the lowest target price in the range above.

Will the stock recover and soar this year? At least three analysts have high expectations.

About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.