Bitcoin Depot vs. Coinbase: Which Stock Will Ride Next Crypto Wave?

2025-08-28 15:24:59

Bitcoin Depot Inc. BTM and Coinbase Global Inc. COIN are two prominent players in the cryptocurrency space. Bitcoin Depot’s business is heavily focused on Bitcoin through its extensive network of crypto ATMs, whereas Coinbase generates revenues from a broader mix of services, including stablecoins, staking, and trading across assets like Ethereum and Solana.

Can Bitcoin Depot’s strategy outperform Coinbase’s diversified approach in the next wave of crypto momentum? Let us find out.

The Case for Bitcoin Depot

Bitcoin Depot has been driving revenues primarily through BTM Kiosks, which accounted for roughly 99.8% of its total revenues in the first half of 2025. As of June 30, 2025, it had 8,978 BTM Kiosks installed across the United States, Canada and Australia, with a median kiosk transaction size of $300.

In 2022, it launched BDCheckout, which allows customers to load cash into their accounts at the checkout counter at retailer locations and then use those funds to purchase Bitcoin. This enables Bitcoin Depot to increase its client base without incurring upfront hardware costs to set up kiosks and pay monthly rents. As of June 30, 2025, BDCheckout was available at 7,022 retail locations.

Bitcoin Depot aims to boost its BDCheckout retail transaction volume to reduce capital expenditures and revert to profitability. Also, it plans to capitalize on existing partnerships and new ones to expand its Kiosks to drive higher transaction volumes. It remains open to opportunistic expansions to scale its operations, given a fragmented BTM market. As cash remains an integral part of the economy, the company has a large client base to acquire, aiding its revenues.

In sync with this, in June 2025, the company acquired the assets of Pelicoin, LLC, to strengthen its presence in the Gulf South region of the United States. Moreover, Bitcoin Depot purchased additional Bitcoin under its treasury strategy, holding more than 100 Bitcoins in its treasury. This reinforces its confidence in Bitcoin’s long-term potential as both a strategic asset and a store of value.

During 2024, the company entered into seven franchise profit-sharing arrangements, under which counterparties will earn a share in profits generated by a particular group of kiosks. Also, it secured a deal with CEFCO for 72 out of their more than 200 locations to diversify within the convenience store industry. The company also signed a master placement agreement with EG America LLC to install BTM kiosks in more than 900 locations. These efforts are likely to drive Bitcoin Depot’s revenues higher and further aid its financials as BDCheckout revenues continue to rise.

Story Continues## The Case for Coinbase

Coinbase offers a broad array of transacting services to its clients that include simple & advanced trading, Prime Trading brokerage platform for institutional investors, and wallet services. Additionally, it provides subscription-based services such as custody of assets, Coinbase One and institutional financing.

Moreover, Coinbase has emphasized stablecoins, which provide the advantages of crypto infrastructure while maintaining greater price stability compared to traditional fiat currencies. The company offers a range of stablecoins pegged to various fiat currencies and is actively pursuing partnerships with multiple stablecoin issuers to broaden its offerings.

In Sync with this, in 2018, Coinbase partnered with Circle Internet Financial, LLC (“Circle”) to launch USDC, to drive global and mainstream adoption of stablecoins. To complement this, Coinbase began paying rewards onchain to customers holding USDC balances in Coinbase Wallet to boost its revenues. During the first half of 2025, 46.5% of total subscription and services revenues came from stablecoins.

Coinbase’s focus on Stablecoins is reinforced by regulatory tailwinds as Donald Trump signed the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) into Law earlier this month. It explicitly prevents Stablecoins from being classified as securities and sets distinct regulatory limits, federal oversight for issuers with more than $10 billion in assets, and state regulation for smaller ones.

Additionally, Coinbase has been generating revenues from Bitcoin, which accounted for 29% of its transaction revenues during the first six months of 2025. In May 2025, it agreed to acquire Sentillia B.V. for roughly $2.9 billion to expand its global presence within crypto derivatives trading. In 2023, it acquired One River Digital Asset Management, LLC, while it purchased Unbound Security, Inc. and FairXchange, Inc. in 2022.

BTM & COIN: Price Performance, Valuation & Other Comparisons

So far this year, shares of Bitcoin Depot have performed extremely well. The stock has soared 137%, while Coinbase has gained 24.4%. Hence, in terms of investor sentiments, BTM has the edge.