The American Multi-Cinema (AMC) CEO Adam Aron has revealed that his theater will accept cryptos for payments before the end of the year 2021. The announcement comes just over a month after AMC announced it would begin accepting Bitcoin. This move puts AMC among the ranks of many other companies using crypto payments in the world.
In a tweet dated 16th September, Mr. Aron affirms that AMC has now accepted Bitcoin for its online ticket and grant payments. In addition to Bitcoin, other cryptos that AMC will adopt include; Ethereum, Litecoin, and Bitcoin Cash.
The decision to embrace crypto follows AMC’s emergence as a meme stock earlier this year. By accepting Bitcoin and other digital currencies, the chain hopes that tech enthusiasts who have invested in the company will now start going to movies there.
This prospect of using cryptos is improving when companies like PayPal and Square (SQ make it comparatively easy to store and use this virtual money. However, transaction fees will remain constant plus the various crypto format which tends to be very volatile.
AMC becomes the Latest company to feed the wider acceptance of cryptocurrencies. Earlier this year saw Tesla (TSLA), an electric vehicle company, accepting bitcoins for its payments. However, it stopped this transaction by mid-May.
According to Aron, AMC is ready to receive the technology needed to use Apple Pay and Google pay in the online ticketing options. this will give cryptos even more significance in the coming years.
Others giant companies accepting cryptos as a method of payment include Microsoft, Overstock, Starbucks, Whole Foods, and many more.
American Multi-Cinema Entertainment Holdings operates as a US holding company. It provides theater shows, movie screening, food distribution, and online ticket booking. Presently, AMC owns and manages nearly 1000 theaters and over 10000 screens globally.
In June 2021, AMC entertainment holdings cut its net loss down to $344 million. Most recently, the shares of AMC were up 10.5% to $37. Prior to this report options market indicated a post-earnings move of about 10%.
According to Mr. Aron, the company raised $1.25 million before commissions and fees ending the company’s quarter stock sales with $2 billion in cash and undrawn revolving lines of credit.
Mr. Aron said that the company stock rose up 656% in the past 12 months and 1494% to date. The company shares also rose at the beginning of the year.
Bitcoin holdings in the AMC have grown quickly over the past five years. this has risen growth in demand from investors. the price of bitcoin has been swinging up and down last trading price hanging around $48000.
It has been a very eventful year for AMC that has seen its shares hover around $48. At the same time, it has been forced to venture into options as new investors.
Thus AMC’s decision is a result of strong positive feedback and requests from their customers. It also marks a union of two risky assets; Bitcoin and AMC which became a meme.