AMC Entertainment (AMC) will start accepting cryptocurrency as payments before the end of the year. Reuters reported that the theater chain will accept Ether, Bitcoin Cash, Litecoin, and Bitcoin as payment for ticket purchases. AMC shares fell 1.71% to close at $46.04 on September 16.
AMC Entertainment is a theatrical exhibition company that owns and operates theaters in the U.S. and internationally.
In a post on Twitter, AMC Entertainment CEO Adam Aron said that AMC Theaters will accept cryptocurrencies for ticket purchases. The announcement comes as big corporations are adding their support to cryptocurrencies.
Notably, the integration of cryptocurrency payments comes amid increased concerns over the environmental impact of cryptocurrency mining activities. The fact that the mining operations consume a massive amount of energy has continued to evoke concerns.
In addition, AMC entertainment is moving to add support for cryptocurrencies at a time when analysts remain wary of their everyday use. (See AMC Entertainment stock charts on TipRanks)
Senior analyst at Swissquote Bank Ipek Ozkardeskaya stated, “People are not buying Bitcoin to spend them. For me, it’s still not a nicely established currency in the sense that it’s more of an investment for the future or for something that we may want to have in the future.”
Recently, Macquarie analyst Chad Beynon downgraded AMC Entertainment to Sell from Hold with a $6 price target, implying 87% downside potential to current levels.
The downgrade comes on the analyst remaining wary about the slow recovery of the movie industry. According to Beynon, AMC is a risky investment given its rent obligations, high debt, and high valuation.
Consensus among analysts is a Hold based on 3 Holds and 1 Sell. The average AMC Entertainment price target of $11.75 implies 74.48% downside potential to current levels.