AMC Entertainment's Cryptocurrency Plans Might Not Be Pointless After All. Here's Why

Struggling movie theater company -- and standout meme stock -- AMC Entertainment (NYSE: AMC) announced on Nov. 12 that it's now accepting multiple types of cryptocurrency as payment. On the surface, this move might look moot in terms of its attempt to recover from its long decline. But there's more than meets the eye in this idea, which could actually help AMC's rebound if the response from moviegoers is positive. Here's why accepting these payment methods could be one more piece in the puzzle of getting the company back on track to profit.

One of the biggest challenges facing AMC Entertainment is the colossal debt burden on its balance sheet. Against the company's $1.6 billion in cash at the end of the third quarter, AMC reported on Nov. 8 it has $5.4 billion in outstanding debt, along with around $200 million in other liabilities, including leases. Shrinking this debt is obviously a priority in any attempt by AMC to get itself back on its feet, but at least one obstacle stands in its way.

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Source Fool.com