AMC Entertainment Invests $27.9 Million in Gold Mine.
After luring cryptocurrency enthusiasts to purchase several units of its stock via the offering of Bitcoin and Dogecoin payments, AMC Entertainment, a popular American movie theater, has used a significant percentage of its profit to acquire a stake in a gold mine.
Details of the Investment
According to a report on Barrons, the movie theater bought a 22% stake in Hycroft Mining Holding, including its 71,000 acres gold and silver mine located in northern Nevada.
The deal, worth around $27.9 million, saw AMC purchase a unit of Hycroft shares for $1.193.
“To state the obvious, one would not normally think that a movie theater company’s core competency includes gold or silver mining,” Adam Aron, AMC CEO, said.
AMC is playing on offense again with a bold diversification move. We just purchased 22% of Hycroft Mining (NASDAQ: HYMC) of northern Nevada. It has 15 million ounces of gold resources! And 600 million ounces of silver resources! Our expertise to help them bolster their liquidity. pic.twitter.com/LihqZguwnd
— Adam Aron (@CEOAdam) March 15, 2022
A Pleasurable Moment for Peter Schiff
In what seemed like pleasant news to popular Bitcoin critic Peter Schiff, once again took a subtle shade at the world’s largest cryptocurrency, saying:
“After trying to su.ker crypto investors into buying their overpriced stock by announcing they would accept Bitcoin payments for popcorn, AMC executives decided to use the money raised by selling stock to buy a gold mine rather than Bitcoin!”
Interesting comments came from the Twitter community, like Greg saying “Adam shouldn’t you be mining Dogecoin instead of gold?”
Adam shouldn’t you be mining Dogecoin instead of gold?
— greg (@greg16676935420) March 15, 2022
AMC’s Initial Support for BTC
Recall that AMC Entertainment was considered a Bitcoin-friendly institution after the company announced it would be accepting cryptocurrency payments for the purchase of movie tickets as well as other merchandise.
The company later added Dogecoin and Shiba Inu to its list of crypto payment options. AMC’s friendly gestures toward cryptocurrencies prompted many enthusiasts to purchase its meme stock.
However, while crypto investors believe AMC will declare more support for cryptocurrencies, the company has made a u-turn in favor of gold, an asset class that has largely been compared to BTC since the peak of the coronavirus pandemic in 2020.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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