US theater chain AMC that is accepting Bitcoin, ETH, Dogecon and SHIB is acquiring a gold and silver mine
As Barron’s reported, the popular American movie theater chain, AMC, which recently started accepting the same Dogecoin and Shiba Inu cryptocurrencies and has been accepting bitcoin payments since last November, is investing in buying a gold-silver mine rather than getting BTC or another crypto on their balance sheet.
The company is also acquiring a stake in Hycroft Mining Holding who owns the mine.
Peter Schiff’s sarcastic tweet
Prominent bitcoin hater Peter Schiff, a goldbug and chairman of SchiffGold, took to Twitter to share an article about AMC refusing to buy BTC but opting for its favorite hedge asset – gold.
He stresses that AMC executives have raised money from crypto investors by selling their stocks to them but then used the funds to purchase the stake in the gold mining company and buy their mine.
AMC buys gold mine instead of BTC, SHIB, DOGE
The company announced the purchase of a 22% stake in Hycroft Mining Holding (HYMC). Their gold and silver mine in the state of Nevada AMC also bought its places on a territory of 71,000 acres.
The amount of funds AMC plans to spend on this investment is $27.9 million in cash. This will buy them 23.4 million warrant units. Each of them will be comprised of one common HYMC share and one common share purchase warrant. Each share costs $1.193 and each purchase warrant is priced at $1.07 and they are issued for a five-year term.
In addition to obtaining the mandates, AMC will have the right to add its representative to the Hycroft board.
As for the mine, it contains 15 million ounces of gold deposits and 600 million ounces of silver, according to AMC.
AMC decided to diversify its funds after profits were hit in 2020. So now it has found a company with cash flow issues, according to AMC chief Adam Aron, and this investment will help both parties, he said, commenting on the deal.
In an attempt to boost ticket sales, AMC has recently started to accept cryptocurrencies – Bitcoin, DOGE and SHIB.
Spot gold price plunges
Today, spot gold lost 1.84% against the dollar. Peter Schiff tweeted that gold is down in anticipation of the ¼ bp hike in the Fed reserve rate tomorrow.
However, the goldbug believes that this step of the Fed will hardly slow the inflation down and real interest rates will keep falling. He added that once the rate hike is over, gold should start appreciating.
Earlier today, Schiff suggested a scenario that would allow the Bitcoin price to rise. Part of it that the Fed wouldn’t raise the interest rate so high and gold would go down.
