- AMC Entertainment aims to implement Bitcoin payment technology by the end of 2021.
- AMC stock was favored by retail traders, who helped push the price by 1,500% this year.
- The company has 593 theaters in the U.S and 335 internationally, with plans to expand further into the Middle East in 2021.
Business underdogs have created a new hysteria among Gen Z and millennial traders. Popular Reddit trading group WallStreetBets, favored stocks such as GME and AMC to obstruct the aggressive trading practices of hedge funds. AMC managed to avoid bankruptcy in 2021, gaining an influx of $917 million after the pandemic threatened their business.
AMC Plans to Accept Bitcoin
In a quarterly report hearing, AMC Entertainment’s CEO, Adam Aron, showed that the company is taking things in its stride. Specifically, AMC raised $1.25 billion in capital during the second quarter, boosting their liquidity to a record $2 million.
Aron emphasized that the company wants to participate in the “new burgeoning cryptocurrency economy,” which is a locus for post-covid entertainment users. During the Q2 earnings call on Monday, AMC announced plans to start accepting Bitcoin as a payment method by the end of 2021; it is not clear what technology will be used to implement this. AMC additionally hinted that it would be opening new locations in Europe, the U.S, and the Middle East through the course of 2021.
It is clear that AMC is thus following the growing innovative trend of Bitcoin payments as a means of resonating with new investors. However, skepticism about the plans have surfaced, with one Twitter user emphasizing that Bitcoin “isn’t for $20 payments.” The sentiment was widely echoed with one Twitter user, exclaiming that, “buying a $20 ticket in BTC now is like throwing away $2000 in the future.”
On The Flipside
- AMC could use Bitcoin to grow its market share even further, while exploiting the trust of young investors.
- There is no clear indication of how and where AMC will carry out a Bitcoin gateway.
- AMC also intends to implement both Google Pay and Apple Pay by the end of 2021.
Crypto and Its Role in Meeting Buyers Half-Way
To date, Bitcoin has increased in value by more than 50% in 2021, outperforming traditional markets that are averaging a 10% yearly increase. As a result, companies such as Microstrategy and Tesla have invested in Bitcoin as a store of value for possible future appreciation. Now, AMC is following the market trend, first laid down by Tesla, of becoming Bitcoin-friendly and accepting BTC as a method of payment.
As market sentiment improves, the narrative around the environment is being overshadowed by substantial price potential. While there was no indication during the Reddit investor call that AMC would purchase Bitcoin as a store of value, Wall Street Journal notes that Adam Aron has emphasized investors’ enthusiasm for cryptocurrency is the main driving force for their decision.
We’ve reached out to AMC for comment, however, to this date, the company has not responded.
Why You Should Care
Mass adoption starts by creating gateways for the exchange of cryptocurrencies. Bitcoin is the new millennium’s digital gold; however, this doesn’t mean that other cryptocurrencies don’t have transaction potential. With AMC having such a large following of Gen Zers, and providing a service for the new generation, their acceptance of Bitcoin could create a snowball effect throughout the crypto space that helps to normalize crypto payments outside of being a store of value.