Bitcoin Depot Slides as New Regulations Expected to Dent Sales
By Katherine HamiltonShares of Bitcoin Depot dropped after the cryptocurrency ATM operator said it expects new regulations to weigh on its future sales.The stock fell 18%, to $2.07, midday Thursday. Shares are still up 27% this year.Bitcoin Depot said Thursday it expects fourth-quarter revenue to be $112 million to $115 million. Analysts polled by FactSet were projecting $144.8 million.In several states, recent regulations which impose transaction-size caps or fee caps in several states are likely to put a dent in revenue, Bitcoin Depot said. The Atlanta company has also enhanced its compliance standards.Executives told analysts on a call that they view the regulatory developments as constructive for the industry's long-term health, despite the financial effects.Write to Katherine Hamilton at [email protected]