AMC customers will soon be able to use bitcoin to pay for movie tickets and popcorn by the end of this year.
AMC’s chief executives confirmed Monday that the largest theater chain in America is entering the cryptocurrency waters. This makes it the first major theater company ever to do so. This is not surprising given the financial success AMC has had this year thanks to its Reddit-powered stock rallies.
AMC shares were trading at $2.01 at the start of 2021. MarketWatch reports that AMC’s stock trades at $34, an increase of nearly 1,500% in the past year. The’memestock’ frenzy that lifted Gamestock to similar confounding heights has fueled a large part of this eye-popping increase.
Aron stated that he had learned more about cryptocurrency and blockchain in the last six months than he did in the entire decade prior to the call. “This increased knowledge has given us the confidence to tell all of you today that AMC will be able to accept bitcoin for payment for movie tickets and concessions online by the end of the year,” Aron said. theatres.
Aron stated that AMC would accept Apple and Google Pay as well, “since we had to do IT programming to accept Bitcoin anyway.” AMC didn’t immediately respond to a request to provide more information about its cryptocurrency plans.
A single bitcoin was equivalent to approximately 3,311 adult AMC movie ticket tickets as of Tuesday morning. AMC joins other giants such as PayPal, Wikipedia and Burger King in accepting the digital currency. Tesla CEO Elon Musk stated that the company would accept bitcoin earlier in the year. However, the decision was reversed after only two months due to environmental concerns.
A 2020 HSB survey found that 36% American small and medium-sized businesses accept cryptocurrency. However, the road to widespread cryptocurrency adoption is still rocky due to regulatory hurdles and volatility as well as consumer skepticism.
“This is still a very contained consumer adoption and moves like these from AMC create more noise than actual transactions for the bitcoin market,” Dan Ives (managing director of equity research at Wedbush Securities), told The Post in an e-mail. Large ticket purchases are the best way to get bitcoin down the road. Not a $12 movie ticket.
According to a July survey by researchers from The University of Chicago, thirteen percent of Americans have reported buying or trading cryptocurrency over the past year.
Bitcoin gained immense popularity during the pandemic. This is because of the economic uncertainty and market volatility caused by the coronavirus, which has led more people to look into alternative currencies. According to CoinMarketCap, the digital coin was originally priced at less that a cent a decade ago and now has a market cap of $853 billion.
The rise of bitcoin has been markedly volatile. Bitcoin’s average transaction fee, which fluctuates with its value, is currently around $2.50. However, it could rise to $60 by 2021. AMC didn’t immediately answer a question regarding whether transaction fees would be passed onto customers.
AMC beat all estimates Monday with its earnings, reporting $444million in second-quarter revenues compared to $19 million at the same time last year. Its wild ride has seen it weather the apocalyptic effects of the coronavirus in the entertainment industry. The company used sales of its shares as a way to reduce debt and strengthen its business. In 2020, the company suffered losses exceeding $4.5 billion as theaters around the country were closed.
The streaming market boomed in the meantime: Worldwide subscriptions to video streaming services reached 1.11 billion in 2020 according to data from Motion Picture Association. This is a 26 percent increase over the previous year.
Analysts have predicted that small-screen viewers will not be returning to cinemas and that streaming-to-consumer would continue to thrive. According to J.D., the average American household spends $55 per month on streaming and has 4.5 providers. Power.
AMC shares rose 6.7% after the announcement of bitcoin and its earnings.
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