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AMC Stock: Company Dives Deeper Into Crypto Space

CEO Adam Aron announced that AMC is ready to accept Dogecoin and Shiba Inu as payment on its website, but AMC stock did not move much. Here’s what could happen next.

AMC’s CEO Adam Aron made a promise, and he has now delivered on it. On March 10, the movie theater operator announced that it has started to accept Dogecoin and Shiba Inu for online payments on its website.

Investors did not seem to care much at first. As of the writing of this sentence, around mid-afternoon EST on Thursday, AMC stock  (AMC) - Get AMC Entertainment Holdings Inc. Class A Report traded down 5% and remains 18% lower over the past five days.

Could AMC’s foray into the crypto world eventually send the share price higher?

(Read more from Wall Street Memes: GameStop Stock: Shorts Are Running Out of Shares)

AMC’s crypto initiatives

Adam Aron has been talking more seriously about crypto since the pandemic days, when the most important topic of conversation for AMC was still the company’s plans to survive the COVID-19 crisis. To his credit, the CEO managed to look past the short-term concerns.

He first discussed accepting Bitcoin for payment in August 2021, during AMC’s earnings call:

“AMC is hereby formally announcing on this call that by year-end, we will have the information technology systems in place to accept Bitcoin as payment for movie tickets and concessions if purchased online at all of our U.S. theaters.”

The company has moved forward with the initiative. In November, Mr. Aron announced that 14% of online transactions were executed using cryptocurrencies and other digital wallets.

Source: amctheatres.com

The inclusion of Dogecoin and Shiba Inu has been the next step in AMC’s push to address the demands of its customers and retail investors regarding cryptocurrency adoption.

How apes have reacted

On Twitter, a few probable investors reacted positively to the news. But many also expressed discontentment over issues that are yet to be resolved, while proposing other initiatives:

  • The use of blockchain technology to trade the stock and keep share count records
  • The issuance of NFT dividends
  • Partnerships with metaverse companies, like Roblox

I tend to agree with what seems to be the consensus here: AMC has been executing on some of its projects, slowly but surely. However, accepting Dogecoin and Shiba Inu as payment is only a small piece of the long list of demands and desires that investors believe to be important.

What could be next

CEO Adam Aron has proved to be attentive to its shareholder base’s concerns. He said so himself a few times, during the company’s most recent earnings calls.

Regarding crypto, the company’s next big move could be the launch of an AMC coin. The idea has been tossed around for a few months now. But Mr. Aron suggested, on Q4 earnings day, that this initiative is likely to take long due to regulatory issues.

Outside the crypto space, initiatives that could move AMC stock and the company’s P&L include: (1) partnerships with movie studios to issue NFTs, (2) variable pricing on admission tickets, (3) sale of merchandise and (4) the launch of a branded credit card.

Twitter speaks

AMC will now accept Dogecoin and Shiba Inu as payment on the company’s website. How important do you think this is for AMC stock and/or AMC’s future financial performance?

(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting Wall Street Memes)