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

Bitcoin Depot Inc. BTM and BTCS, Inc. BTCS 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 BTCS generates revenues from Ethereum block-building and validator node operations across proof-of-stake (“PoS”) and delegated proof-of-stake (“dPoS”) networks.

Can Bitcoin Depot’s Bitcoin-centric strategy outperform BTCS’s Ethereum-based approach in the next wave of crypto momentum? Let’s find out.

The Case for Bitcoin Depot

Bitcoin Depot has been driving revenues primarily through BTM Kiosks, which accounted for roughly 99.7% of its total revenues in the first quarter of 2025. As of March 31, 2025, it had 8,463 BTM Kiosks installed across the United States, Canada and Puerto Rico, with a median kiosk transaction size of $300.

In 2022, BTM launched BDCheckout, enabling customers to load cash into their accounts at retail checkout counters to buy Bitcoin. This expanded the company’s customer base without the upfront costs of installing kiosks or paying rent. As of March 31, 2025, BDCheckout was available at 10,926 retail locations.

Bitcoin Depot aims to boost its BDCheckout retail transaction volume to reduce capital expenditures and sustain profitability. Also, it plans to capitalize on existing and new partnerships to expand its BTM Kiosks to drive higher transaction volumes. It remains open to opportunistic expansions to scale its operations, given a fragmented BTM market.

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 expanded its treasury holdings by purchasing additional Bitcoin, now holding more than 100 Bitcoins. This move underscores the company’s confidence in Bitcoin’s long-term value and strategic role as a store of wealth.

Last year, the company signed seven franchise profit-sharing deals. Also, it secured a deal with 72 CEFCO stores to diversify within the convenience store industry. The company also signed a master placement agreement with EG America LLC to install kiosks in more than 900 locations.

These efforts are likely to drive Bitcoin Depot’s top line higher and help move toward sustained profitability as BDCheckout revenues continue to rise. As cash remains an integral part of the economy, the company has a large client base to acquire, aiding its revenues.

The Case for BTCS

BTCS, a Nevada-based firm, is focused on blockchain infrastructure. Its primary operations center around the Ethereum network, reflecting its strategic emphasis on Ethereum block-building (“Builder+”) and validator node operations (“NodeOps”) across various PoS and delegated dPoS networks. Ethereum accounted for 54.9% of NodeOps revenues during the first three months of 2025.

In 2024, BTCS introduced Builder+, a key pillar of its blockchain infrastructure strategy. This platform uses advanced algorithms to optimize Ethereum block construction for on-chain validation, with the goal of maximizing gas fee revenues. Builder+ has emerged as BTCS’s primary revenue contributor, accounting for 79.9% of total revenues in the first quarter of 2025 and solidifying the company's role in Ethereum’s transaction ecosystem.

Alongside its infrastructure initiatives, BTCS has created ChainQ, an AI-driven blockchain data and analytics platform, with an aim to improve transparency and accessibility across the blockchain ecosystem. Currently in beta, ChainQ offers user-friendly tools for exploring and analyzing on-chain data, leveraging insights gained from BTCS’s infrastructure operations.

PoS ecosystems have gained substantial traction due to their energy efficiency, scalability and ability to support diverse applications, including decentralized finance, non-fungible tokens, and other blockchain-based innovations. Ethereum’s transition to PoS in 2022 further solidified its position as a leading blockchain for smart contracts and decentralized applications.

BTCS aims to grow revenue and margins by scaling Ethereum block-building via Builder+ and expanding NodeOps, enhancing its technology stack, boosting Builder+ order flow, and increasing control over block space. These efforts optimize transaction efficiency, capture more maximal extractable value opportunities, and strengthen BTCS’s long-term position in blockchain infrastructure.

Story Continues## BTM & BTCS: Price Performance, Valuation & Other Comparisons

So far this year, shares of Bitcoin Depot and BTCS have performed extremely well, given the bullish investor sentiments toward digital assets. BTM stock has soared 208%, while BTCS has jumped 95.5%. Hence, in terms of investor sentiments, BTM has the edge.

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From a valuation perspective, Bitcoin Depot is currently trading at a forward 12-month price-to-sales (P/S) of 0.5X, while BTCS stock is trading at a forward 12-month P/S of 12.08X.

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So, BTCS is expensive compared with Bitcoin Depot.

Bitcoin Depot’s return on equity of 70.88% is above BTCS’s -41.76%. This reflects that BTM is much more efficient in using shareholder funds to generate profits.

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Bitcoin Depot & BTCS’ Earnings & Sales Prospects

The Zacks Consensus Estimate for BTM’s 2025 and 2026 revenues indicates year-over-year growth of 9.5% and 4.3%, respectively. The consensus estimate for the company’s earnings indicates a 176.7% and 10.3% year-over-year jump in 2025 and 2026, respectively.

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The Zacks Consensus Estimate for BTCS’ 2025 revenues implies a year-over-year increase of 74.7%. Also, the consensus estimate for BTCS’ earnings indicates a rise of 38.2% for 2025.

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BTM or BTCS: Which Stock is a Better Pick?

BTCS remains solid in its Ethereum-based approach with infrastructural developments. Also, diversification into other cryptocurrency assets enables it to generate revenues from broader cryptocurrency tailwinds.

Nonetheless, Bitcoin Depot is scaling rapidly with its BTM Kiosks expansion through strategic partnerships and BDCheckout growth. Its significantly stronger revenue and earnings growth prospects and attractive valuation enhance its appeal as a high-upside investment opportunity.

Both BTM and BTCS currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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