On Monday’s quarterly earnings call, AMC Entertainment CEO Adam Aron stated that the company is putting in place IT infrastructure to support Bitcoin payments. Before the end of the year, AMC theaters are expected to accept cryptocurrency as a payment method.
Prepare The Popcorn
Aron stated during the earnings call that the chain would accept Bitcoin for online payments of both movie tickets and concessions in all U.S. theaters.
The transaction combines two notable investments that have made headlines this year. Of course, Bitcoin is known as the leading asset behind broader crypto, and AMC – a company whose stock was grouped with the likes of Gamestop ($GME) in this year’s r/WallStreetBets saga. During the retail revitalization, AMC stock increased by over 1,000%.
This week’s earnings report showed that AMC’s numbers were better than expected, with revenues exceeding analysts’ expectations. The company also reported losses per share of $0.71, compared to the expected $0.91. By the end of June, all of the theaters’ U.S. locations were open, and nearly all of the international locations were open. In the second quarter of the year, the company hosted 22 million guests.
Aron also expressed optimism that the fourth quarter could be the quarter in which the company finally turns a profit. AMC is also expected to experiment with new content, such as sports and pre-recorded concerts. AMC is also expected to begin accepting payments via Google Pay and Apple Pay in addition to Bitcoin.
AMC stock rose more than 3% on the day.
Not the first… and definitely not the last
AMC will join a growing list of publicly traded companies that are incorporating Bitcoin into their operations in some way. Tesla, led by the Doge-king himself, Elon Musk, initially accepted Bitcoin as payment for vehicles before discontinuing acceptance in mid-May, citing environmental concerns.
Musk has since expressed general optimism about Bitcoin, including recent remarks about renewable energy usage in particular. However, it remains to be seen how this will affect Tesla’s previously implemented policy.
Of course, fintech and related firms, such as Square and MicroStrategy, have added Bitcoin to their balance sheets. PayPal has also recently become more crypto-friendly. Musk has recently hinted that Tesla may own up to 42,000 BTC.
Sotheby’s auction house has recently begun accepting cryptocurrency, as well as listing NFTs. More non-traditional companies are also joining the fray, such as Microsoft’s Xbox and Starbucks, which have partnered with Bakkt to investigate crypto payments.
Could AMC pave the way for more ‘non-crypto-first’ companies to accept crypto payments in the United States?
AMC saw strong numbers on the day after reporting a solid earnings report, and the company expects to support Bitcoin payments by the end of the year.