Crypto: AMC’s deeper move into crypto cements Adam Aron as ‘King Silverback’ of meme stocks

AMC Entertainment AMC, +2.46% chief Adam Aron tweeted late Wednesday that his company has decided to already expand its acceptance of cryptos as payment at its theaters after announcing just last month that it plans to accept Bitcoin BTCUSD, +0.05% by the end of 2021, a declaration that not only sent a jolt through the crypto market but further cemented Aron’s position as the ‘King Silverback’ executive in the meme stock scene.

“Cryptocurrency enthusiasts: you likely know @AMCTheatres has announced we will accept Bitcoin for online ticket and concession payments by year-end 2021,” Aron tweeted late Wednesday night. “I can confirm today that when we do so, we also expect that we similarly will accept Ethereum, Litecoin and Bitcoin Cash.”

Theatergoers using digital wallets to buy movie tickets and popcorn are another cherry on top of the acceptance sundae that crypto investors are gorging on recently. In addition to numerous other retail companies moving to accept cryptos, the nation of El Salvador declared Bitcoin to be legal tender within its borders on September 7.

Many Wall Street insiders remain on the fence regarding Bitcoin and its fellow cryptos, the most recent notable being hedge fund billionaire Ray Dalio who cautioned in an interview with CNBC on Wednesday that Bitcoin’s success might be its greatest threat. 

“I think at the end, of the day if [Bitcoin is] really successful, [regulators will] kill it. And they’ll try to kill it,” said the Bridgewater Associates founder. “And I think they will kill it because they have ways of killing it.” 

But Aron has made it clear that his stewardship of AMC is no longer focused on appealing to institutional investors like Dalio, but is instead aimed at appeasing his key majority shareholders: the self-professed army of ‘Ape’ retail investors who have sent AMC stock soaring in what has become a modern financial crusade.

By already quadrupling down on his crypto bet to put Litecoin LTCUSD, +2.13%, Ethereum ETHUSD, +1.22%, and Bitcoin Cash BCHUSD, -2.46% in AMC’s mix, Aron has once again put himself on the bleeding edge of ‘Ape’ leadership. Retail investors have clamored on social media for months that AMC and fellow meme stock GameStop GME, +3.68% should accept cryptos and even get into the market for non-fungible tokens, or NFTs.

Wednesday’s news appears to have it its mark. 

On Reddit, AMC bulls celebrated Aron’s tweet, with many referring to him by the honorific “Silverback” and pointing to his leadership as the kind of forward-thinking that will justify AMC’s now sky-high stock price.

“I think Adam is actually hustling here,” mused user Embarrased_Nebula24 on subreddit AMCStock. “I’m sure they’ll stock pile any crypto used as payment and make millions off it.”

The most popular critique of Aron’s decision was the omission of Dogecoin, which dozens of Reddit users cited as the one crypto they would spend for a night out at the movies due to its smaller upside and social media acclaim. 

“People would be more apt to spend Doge over Bitcoin,” offered user Jgrice242.

Aron, who has made waves before by creating a program for AMC’s retail shareholders to get free popcorn and other rewards for holding stock, and saying on live television during the company’s most recent earnings that he works for the apes who now own more than 70% of his entire float, has even teased a collaboration with GameStop.

But while that collaboration remains a tantalizing mystery to many meme stock traders, what has become crystal clear is Aron’s unignorable ability to harness the power of the meme frenzy for his own company’s gain.

Aron’s engagement with the retail crowd has created a stark distinction between him and fellow memelord executive Ryan Cohen, the chairman of GameStop’s board, who has now been silent for months on what his plans are for the videogame retailer and did not speak on the company’s minimalist seven-minute long earnings call last month.

AMC stock was up as high as 2.8% in Wednesday morning trading.