In fact, over the past weekend, Aron opened a twitter poll for a new NFT, titled “ There’s Gold in Them Thar Hills” to celebrate the recent influx of liquidity in the troubled mining company.ĭoes this mean that a short squeeze in AMC shares is imminent? Not so fast. Moreover, with Hycroft shares up a whopping 274 percent so far in 2022, AMC Entertainment's CEO, Adam Aron, recently communicated the theater chain's willingness to pursue similar unorthodox investments, paving the way for the current bull run in AMC shares. By investing just 2.6 percent of its unrestricted cash balance of $1.59 billion (as of the end of 2021) in Hycroft, AMC seems to have bought a very cheap call option on metallic gold, which is expected to reach $2,500 per ounce by the end of 2022, as per a tabulation by Goldman Sachs. Riley Securities, which allows the company the opportunity to sell $500 million worth of common shares via periodic offerings.Īs per an initial assessment conducted in 2022, Hycroft currently owns over 15 million ounces of minable gold and 596.4 million ounces of minable silver spread over 72,000 acres in Nevada.
To wit, AMC has now invested $27.9 million in Hycroft, thereby opening the doors to a further investment of $527.9 million from the likes of Eric Sprott as well as an At Market Issuance Sales Agreement with B. Nonetheless, AMC Entertainment's acquisition of a 22 percent stake in the troubled gold miner, Hycroft Mining Holding Corporation ( NASDAQ:HYMC), seems to be acting as the most potent tailwind currently. Moreover, the company continues to launch commemorative NFTs around the release of blockbuster movies. Back in December 2021, it announced "I Own AMC" NFTs on the WAX blockchain exclusively for the company's shareholders, entailing various discounts and a host of other benefits. It also surpassed non-GAAP EPS estimates by $0.14, reporting an adjusted bottom-line metric of -$0.11.Īs a part of its turnaround campaign, AMC is also tapping into the new gold rush of sorts in NFTs.
Dissecting the Tailwind Behind AMC Entertainment (NYSE: AMC) SharesĪMC Entertainment reported quite strong Q4 2021 earnings recently, beating revenue estimates by $57.43 million to report a top-line quarterly metric of $1.17 billion.