AMC Stock Eyes Second Green Week: CEO Adam Aron Calls Robinhood's Stock Tokenization ‘Fake, Synthetic’ Ahead Of Earnings — ‘Could Impact Our Capital Structure’

AMC CEO Adam Aron criticized Robinhood’s stock token plans, warning they could weaken shareholder rights.

• AMC CEO Adam Aron condemned Robinhood for creating digital tokens linked to AMC shares without permission. 
• He warned the tokens could affect AMC’s ownership structure and said the company should control its shares.
• Robinhood’s CEO Vlad Tenev has been defending the broker’s plan to issue ‘stock tokens’.

AMC Entertainment Holdings Inc. (CEO) stock is headed for a second week of gains, and CEO Adam Aron has fired up his public feud with Robinhood Markets Inc. (HOOD) executives Vlad Tenev and Dan Gallagher, fiercely rejecting the retail broker's offshore stock tokenization plans, ahead of third-quarter (Q3) earnings. 

AMC Entertainment stock edged 0.3% lower overnight, ahead of Friday. The stock has gained 1.3% so far this week. 

AMC CEO Slams Robinhood Over Stock Tokenization 

On Thursday, Aron took to X to launch a blistering broadside against Robinhood, directly confronting its CEO Vlad Tenev and chief legal officer, Dan Gallagher, over the broker’s stock tokenization initiatives. 

Aron is concerned that Robinhood is creating digital tokens linked to AMC shares without the company’s permission. He called them “fake, synthetic shares” and warned that they could affect AMC’s ownership structure and control over its shares. 

“AMC Entertainment does not consent to Robinhood creating Stock Tokens to replicate AMC shares in the United States (the SEC requires you to get our consent, or failing that, at least with us to stand down). They are fake, synthetic shares, which could impact our capital structure.”

“AMC should control our financial destiny, not Robinhood.”

Robinhood’s stock tokenization program lets international investors trade digital tokens linked to U.S. stocks and ETFs around the clock. The tokens track stock prices but do not give holders direct ownership or voting rights. AMC argues that creating tokens linked to its shares without permission could affect its ownership structure and control. 

AMC And Robinhood Clash Over Shareholder Rights 

Last month, Johann Kerbrat, Senior Vice President and General Manager of Crypto and International at Robinhood, said the platform plans to add a feature that lets eligible stock token holders exchange their tokens for actual shares and gain voting rights. 

AMC CEO Adam Aron has opposed the initiative, stating that token holders could gain exposure to stock prices without receiving full shareholder rights. Robinhood CEO Vlad Tenev has defended the program, saying companies should control shareholder rights but not every legal use of their shares.

The confrontation comes ahead of AMC Entertainment’s expected Q3 earnings next month. According to Fiscal.ai data, analysts project $1.4 billion in revenue and a $0.16 per-share loss. 

Last month, Citi raised its price target for AMC Entertainment to $2.20 from $1.80 but maintained a ‘Sell’ rating. The analyst said AMC’s revenue so far this quarter reached $1.33 billion, beating expectations as more people visited its theaters. However, Citi remains concerned about AMC’s high debt and long-term challenges facing the movie theater industry. 

AMC Stock: Retail View 

On Stocktwits, retail sentiment around both AMC and HOOD stocks remained ‘bearish’.

A user said, “Why didn’t he lawyer up back in 2021 when $HOOD did unethical thing by blocking the “buy button”? Why is he worried now? Why a 360 turn after 5 years? Did his friends load enough shares, and is this ready for the squeeze?”

AMC stock has surged 93% year-to-date, while HOOD stock has dropped 8%. 

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