Bots Inc (BTZI)

[lesgetrich]

The patent was granted by the USPTO in 2014. It's enforceable. It covers the basic operation of an ATM that deals in Bitcoin. Most commonly used cryptocurrencies are indexed to bitcoin. The advantage to cryptocurrency ATM's is that you don't need a bank account. There is a vast market for Crypto ATM's which replace check cashing businesses that charge outrageous fees and interest rates. There are currently over 13,000 Crypto ATM's in the US, up from around 2,500+ in 2019. Why would there be such growth if there was no market for these ATM's. The profitability of these machines is posted at Coinatmradar. The ROI for a machine varies from 3 months to 2 years depending on location. Here's one example...

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Cottonwood Vending bitcoin ATM in NYC

The following article on Bloomberg contains some valuable information about volume that bitcoin ATM’s bring to operators. CoinBTM (Cottonwood Vending) operates bitcoin machines in NYC area solely. At the end of 2018 there are roughly 90 machines in operations. The company applied for Bitlicense and provided operational details. From the linked aritcle it follows that:

It has 13 employees and gross annual revenue exceeding $35 million—about $385,000 in cash per machine, according to court records.

So on average one ATM brings $32K in gross revenue per month. This is pretty close to estimation that was obtain during a survey in the past, when on average bitcoin ATM was reportedly bringing $20-30K in revenue per month.

Same article claims that company charges 19% or more from customers (actually the fee size is tiered from 6% for large amounts to 20% for small amounts). If average of 13% is taken, it results in roughly $4000 gross profit per ATM per month, which for the network of 90 ATM’s is roughly a $4.3 million in gross profit per year.

The company pays $500 to one of the locations for renting space for ATM’s per month.

There's no reason to believe a big company can find there way around a patent simply because they're big. Note the following...

Robert Kearns

Robert William Kearns (March 10, 1927 – February 9, 2005) was an American engineer, educator and inventor who invented the most common intermittent windshield wiper systems used on most automobiles from 1969 to the present. His first patent for the invention was filed on December 1, 1964, after a few previous designs by other inventors had failed to gain any traction in manufacturing.

Kearns won one of the best known patent infringement cases against Ford Motor Company (1978–1990) and a case against Chrysler Corporation (1982–1992). Having invented and patented the intermittent windshield wiper mechanism, which was useful in light rain or mist, he tried to interest the "Big Three" auto makers (General Motors, Ford, and Chrysler) in licensing the technology. Each rejected his proposal, yet began to install electronic intermittent wipers based on Kearns's design in their cars, beginning in 1969, when Ford rolled out the feature to its Mercury line.