Bitcoin can finance growth in the cannabis industry

Modern research speaks of the many medicinal properties of cannabis (medical marijuana). As a result, some countries gave concessions to its preparation and use in medicine. These are such states as Canada, Holland, USA, Israel, Germany, Portugal, Spain, Australia and others.

Surpassed all of them in terms of concessions in Uruguay, where the state has had a monopoly on the sale of marijuana since 2013.

A new industry has emerged, and stocks of marijuana companies have become a good investment tool. In 2019, the marijuana market was estimated at $9-$10 billion; in the next ten years, it is predicted to grow to $100+ billion.

Cannabis, also known as marijuana or hemp, is a light drug in some countries. However, physicians value Tetrahydrocannabinol (one of the two main active substances) to reduce pain, relieve tension and facilitate sleep. It is also used to treat neuropsychiatric, autoimmune and cancerous diseases.

A quick way to invest in cannabis legally is to buy shares in the respective companies. Marijuana producers publish financial statements, go through an IPO and thrive.

What you need to know about cannabis 

 According to the UN, cannabis is one of the most widely used drugs in the world. At the same time, people use cannabis for medical and recreational purposes. However, cannabis was illegal in the United States for most of the 20th century. 

During this time, US lawmakers were concerned about the risks and benefits of cannabis use. But over the years, cannabis has been proven to help people suffering from post-traumatic stress disorder and other illnesses. As a result, it has prompted many legislators to reconsider their stance on cannabis.

During the last ten years, marijuana has been legalized or decriminalized in 38 US states and Washington, DC. As marijuana is legalized in more states, the number of licensed cannabis retailers is growing in the country, contributing to safer and healthier cannabis use worldwide. These retailers sell cannabis products and accessories. They also seek opportunities to stand out from the competition and maximize sales.

The catalysts for the dynamics of the global cannabis market are primarily Canada and the United States. Several of the largest US states (Alaska, Colorado, California, etc.) have given relief to the use of cannabis for far from medicinal purposes. For example, marijuana has been legal in California since 2018.

The dynamics of the legalized medical marijuana market can be tracked by the North American Marijuana Index – North American marijuana Index, NAMMAR.

It includes significant North American substance manufacturing companies and pharmaceutical companies.

Shares of marijuana producers

 It is no need for additional permits or licenses to buy marijuana shares; technically, purchasing such securities is no different from acquiring, for example, shares of Google or Samsung.

Before investing in cannabis stocks, you must carefully study the industry and its leading players.

Canopy Growth (old name Tweed Marijuana Inc)

Price today (online): $2.92.

Capitalization: $ 1.41B.

It is a Canadian marijuana company headquartered in Smiths Falls, Ontario. As of April 2019, Canopy Growth held the world’s most significant cannabis company title. Later, competitors appeared, comparable in scale.

Canopy Growth is not limited to the production of only medical cannabis; the company offers

• Products from industrial hemp;
• Cannabis in the form of capsules – the active substances are enclosed in a soft gel capsule;
• Oils and concentrates;
• Dried cannabis;
• Cartridges for electronic cigarettes;
• Drinks with active substances derived from marijuana.

Canopy Growth is the first company in the world to partner with a Fortune 500 member in the alcoholic beverage industry.

Cannabis-infused food. The plant in Smiths Falls initially produced only chocolates, but the product line is constantly expanding.

In 2018, the big alcohol producer Constellation Brands acquired nearly 10% of Canopy shares with a $245 million investment. In addition, canopy Group is doing serious work at the international level. It intends to establish itself in the markets of some European countries, Latin America, as well as in Australia and Canada.

Paper Canopy Growth was among the first traded on the US and Canadian stock exchanges. Dividends are not paid, and there are no plans to introduce them in the future, but for growth portfolios, shares of this company are a good choice.

Curaleaf Holdings Inc.

Price Today: $7.22.

Capitalization: $5.13B.

It is an American manufacturer of medical cannabis headquartered in Wakefield, Massachusetts. The company owns and operates dozens of dispensaries through which it sells its products. By 2020, the number of registered patients in Curaleaf dispensaries exceeded 200,000.

Curaleaf Holdings Inc, The company’s shares, are traded on Canadian stock exchanges; in the US, at the initial stage of development, it changed the paper on the over-the-counter market.

Curaleaf sells cannabis in almost all forms of demand, available

• Oils;
• Concentrates for smoking;
• Flowers;
• Tinctures;
• Capsules with prepared cannabis;
• Sweets and lollipops;
• Marijuana seeds are not sold separately.

It ranks among the industry leaders in terms of business scale and capitalization. Curaleaf ‘s reliability is that the company has a complete production cycle, from growing marijuana bushes to producing ready-to-eat products. Own a network of dispensaries and a solid base of regular customers add stability to the business.

GW Pharmaceuticals

Unlike Curaleaf, GW Pharmaceuticals is not betting on growing cannabis but on developing innovative drugs based on the active ingredients of marijuana. Cannabis cultivation is carried out instead for research purposes.

GW Pharmaceuticals This biopharmaceutical company is testing innovative marijuana drugs to combat epilepsy attacks and treat the manifestations of multiple sclerosis. In addition, it develops various medications to treat glioblastoma, neonatal encephalopathy, and schizophrenia.

GW Pharmaceuticals is a British company founded in 1998, one of the pioneers in the field of medical marijuana.

Already in 1998, it obtained a license to grow cannabis for research purposes, and in the same year, a partnership with the Dutch HortaPharm BV began.  

The company’s success depends on the successful introduction of marijuana-based drugs to the global market. On GW’s track record Pharmaceuticals

• Sativex (Nabiximol), available as a spray, is used to relieve the symptoms of multiple sclerosis. Other scenarios for the use of Sativex are possible, for example, to alleviate pain;
• Epidiolex – developed to combat childhood epilepsy, approved by the EMA in September 2019, which means that it can also use outside the UK.                                                                                     

Cannabis stocks of this type are more dependent on success in drug development. So News about the legalization of, for example, recreational cannabis effect quotes not so much.

Aphria (One of the two most exciting companies)

Price Today: $44.07.

Capitalization: $79.35B.

Aphria is a Canadian company headquartered in Leamington, Ontario. Aphria shares are traded on the Toronto, US NYSE and NASDAQ stock exchanges. Work began in 2013, and in 2014 the Canadian government licensed the company as a supplier of medical cannabis. In 2018, it received new growth momentum after opening the recreational marijuana market in Canada. As a result, shares of cannabis companies after began to rise sharply.

The last few months have been very dynamic for Aphria and its investors. First a noisy story in which the company was accused of unfair transactions in the interests of investors. Second, a takeover-merger rodeo that propelled stocks up. More details about this are in the channel, and if you are interested, you can delve into the essence of the matter. Finally, of course, all investors anxiously awaited the report on January 11.

Let’s start with revenue and profit. Just look at the indicators. Aphria ‘s net income rose 155% year-on-year and 63% higher than the previous quarter to $16.4 million. Canada’s opening of a recreational marijuana market in October 2018 boosted Aphria’s business.  

The company’s net income rose sharply, nearly 750% year-on-year, to $54.8 million.

Aphria reported that its total cost of goods sold per gram rose by 42% quarter-on-quarter to $ 2.6. The price of producing one gram of dried cannabis rose 35% in the quarter to $1.76 Canadian. 

The company attributed this to increased packaging costs, high costs and temporarily lower yields associated with its expansion efforts. As a result, Aphria ‘s adjusted gross margin fell from 67.7% in the previous year to 46.9% in the second quarter. This decline was due to the expansion of Aphria’s business, the reduction in average selling prices in the recreational marijuana market, and the increase in production costs due to this expansion.  

On the one hand, revenue and profits are growing at an excellent pace, but on the other hand, we see an inevitable increase in production costs. However, since Aphria is one of the lowest-cost companies in the industry, it is well positioned to continue to make good profits on the back of aggressive growth.

For the first material, we think that’s enough. We want to note that despite the positive movement, the sector shares are volatile and risky, so be careful to evaluate entry points and your opportunities.

I hope the article was helpful for those who see investment opportunities in new industries. I will be glad to share my experience further. Today, the industry is in its infancy; once, Amazon was trading at $15, and now it’s cannabis stock.

Tilray (Second of the two most exciting companies)

Price Today: $3.93.

Capitalization: $2.11B.

Tilray is another Canadian company active not only in the local market but also in the USA. In addition to medical and recreational cannabis, the company supplies marijuana for research purposes.

Tilray is the first supplier of medical cannabis to EU countries.

It has been operating since 2013; in addition to the USA, Tilray has established itself in Latin America, Germany, Australia, New Zealand, and Portugal. In addition, under the auspices of Tilray, a sub-brand High Park Company was launched, and his goal is to enter the recreational cannabis market.

Tilray is the first company in the sector to go public on the NASDAQ. Tilray’s IPO created hype on the stock exchange, and the shares soared from $30 to $300. Cool, sure, but then the market put everything in its place, and there were a lot of disappointments: the stock fell to $70 and later corrected to $100. Serious zigzags for investors.

On December 18, Tilray (TLRY) announced a partnership with Sandoz, part of the pharmaceutical giant Novartis (NVS). Under the deal, which bolstered Tilray ‘s stock, Sandoz will market Tilray ‘s medical cannabis products – and that’s a good thing.

Four days later, Tilray stirred up the market again and announced that it would collaborate with Anheuser – Busch (BUD) to explore cannabis-infused drinks. So the expansion of the product line is certainly also good.

However, Tilray takes an interesting position. Unlike other major players in the industry, Tilray is not interested in receiving investments, as it prefers to remain wholly independent and concentrate management in its own hands. Is this correct, and will the company cope on its own?

There is a reason for this question: TLRY had an operating loss of $34 million on sales of $27.6 million in the first nine months of the financial year. “Nervous” indicator. To take place in the sun, the company needs deep pockets. But let’s be objective. The authoritative partners of Sandoz and Anheuser – Busch are not simpletons to cooperate with an unprofitable company, which is also a fact.

However, even such large transactions will not be able to return the value of Tilray shares to three-digit numbers. But in fairness, we note that the company’s general director is in a combative and optimistic mood. He claims there will be three $100 billion cannabis companies and hopes Tilray will be one of them. It also expects to become one of the three companies in the sector with annual sales of $50 billion.

On the one hand, we think that Tilray ‘s strategy is justified – it does not sell a share at the development stage, planning to increase its value. Still, on the other hand, it is pretty risky because, in the competition with those companies that other investors have poured billions of funds into, Tilray may lose.

In mid-December 2020, Tilray and Aphria announced a merger.

Cresco Labs

Price Today: $4.44.

Capitalization: $ 1.30B.

The American marijuana manufacturer, in addition to the production capacity for growing cannabis, also owns a network of dispensaries. In addition to medical marijuana, concentrate and vape liquids are also produced.

Feature Cresco Labs – an abundance of sub-brands; these include

• Cresco – supplies the market with resins, concentrate and cannabis flowers;
• Cresco Reserve – selected marijuana flowers for sale under this brand. The best varieties are chosen, grown according to unique methods, and 10% of the best flowers are selected from the collected flowers. They are sent for sale;
• Remedi – a trademark created for the production of medical cannabis. Tinctures and capsules enter the market;
• Mindy’s – under this brand, food products containing marijuana are promoted;
• Good News – vape liquid and sweets are produced;
• High Supply – wholesale supplies of cannabis of various varieties;
• Wonder Wellness Co – Minis sweets are produced with different cannabis content;
• Floral Farms – the brand is focused on the Californian market and supplies cannabis flowers to it. Its peculiarity is the use of only renewable energy sources.

The capitalization of Cresco Labs is estimated at billions of dollars, and nothing threatens financial stability.

Aurora Cannabis

Price Today: $2.92.

Capitalization: $1.41B.

Another Canadian manufacturer of medical cannabis is headquartered in Vancouver. Aurora is licensed to grow, import and distribute products based on this plant.

Aurora’s range of interests is not limited to medical marijuana. Branded by San Rafael, Daily Special, Aurora Drift, Whistler Cannabis Co, Woodstock, AltaVie implemented recreational cannabis and products with the addition of relevant substances. There are even standalone products for music festival goers and products based on hand-grown marijuana.

In the initial stage, the company worked in the market of Canada and the USA; later, expansion began to Europe and other regions of the world. As a result, Aurora Cannabis has already established itself in major markets and is one of the major players in the global marijuana market.

Abbvie Inc

Price Today: $1.55.

Capitalization: $461.04M.

The headquarters is located in Chicago. As an independent company, Abbvie appeared in 2013 and is a subsidiary of Abbot Laboratories.

Abbvie Inc is working on drugs to treat rheumatoid arthritis, Crohn’s disease, HIV, thyroid, kidney disease, and Parkinson’s disease. For treating some of them, particularly Parkinson’s disease, the substances contained in cannabis are used directly.

Cronos Group Inc

Price Today: $3.35.

Capitalization: $1.27B.

Kronos Group is a Canadian innovative cannabinoid company operating in the US and abroad. He sees his mission in research and revealing the full potential of cannabis to improve the quality of life of people. It also produces and sells hemp supplements and cosmetics.

Like previous Canadian companies, Cronos Group Inc has a complete production cycle – from growing cannabis plants to supplying medical and recreational marijuana.

Cronos Group has created six brands (PeaceNaturals, Cove, Spinach, Lord Jones, Happy Dance, Peace +), each specializing in one direction.

Since 2019 in Canada, Cronos Group has sold its products through a network of stores created in cooperation with the American MedMen.

The distributor agreement with G. Pohl-Boskamp made it possible to enter the German market. Work is also underway on the needs of Australia and Israel.

Capitalization is estimated at billions of dollars, which makes the company one of the most prominent leaders in this industry.

Cara Therapeutics

Price Today: $8.77.

Capitalization: $469.99M.

Cara Therapeutics is a biopharmaceutical corporation headquartered in the US Stamford (Connecticut).

Its employees are working on creating drugs to reduce pain; drugs are also being developed to relieve the sensation of itching. To achieve the desired result, substances directly contained in marijuana are used.  

Medreleaf

Medreleaf is a Canadian manufacturer of medical cannabis; the company also performs scientific research related to the study of the effect of marijuana on the human body. Medreleaf grows cannabis, sells it in dried form, and markets oils and marijuana capsules. Beyond cannabis-based products, Medreleaf manufactures crushers, vaporizers, lockable containers and other equipment in demand in the marijuana industry.

Medreleaf is singled out as the company with the most developed infrastructure. From this point of view, this Canadian cannabis producer is among the leaders.

Green Thumb Industries Inc.

Price Today: $12.30.

Capitalization: $2.90B.

Green Thumb Industries Inc – Chicago’s recreational and medical marijuana manufacturer, is rebranding Bayswater Uranium Corp. Through a series of sub-brands, medical cannabis, foodstuffs, and oils, dried plants themselves. The bet is made on the cultivation, processing and sale of products through a network of own stores.

The Scotts Miracle-Gro Company

Price Today: $89.47.

Capitalization: $4.96B.

Unlike most companies listed above, Scotts Miracle does not grow cannabis, manufacture medicines, or rent property. Instead, Scotts Miracle is one of the largest American horticultural companies. It supplies marijuana producers with seeds, fertilizers, greenhouses and other equipment.

If the stocks of cannabis companies rise, it affects the papers of The Scotts Miracle-Gro Company.

HEXO Corporation

Price Today: $0.20.

Capitalization: $122.11M.

It is a Canadian manufacturer of medical and recreational marijuana. Despite the relatively small capitalization, it has a good production capacity, and cannabis is grown in areas of over 300,000 square feet.

Medical marijuana is marketed under the Hydropothecary brand. The company also sells dried buds, flowers, sprays, and even gels for intimate hygiene with the addition of cannabis-derived substances.

Arena Pharmaceuticals Inc

Arena Pharmaceuticals is an American pharmaceutical company headquartered in San Diego, California. Arena does not grow and process cannabis directly but focuses on drug development. Marijuana-based drugs are just one of the activities.

One of Arena’s breakthroughs is APD 371, which treats Crohn’s disease.

OrganiGram Holdings Inc.

Price Today: $1.13.

Capitalization: $356.98M.

Canadian marijuana grower licensed to grow, process and sell cannabis products. Dried plants, oils and medical products are sold.

The first deliveries took place in 2014. Later, the company agreed with some organizations that help veterans and intelligence officers treat chronic diseases. In addition to retail, there are also wholesale sales.

KushCo holdings

It works in the sector adjacent to the cultivation of cannabis. KushCo Holdings is an American manufacturer of auxiliary equipment for the marijuana industry. Additional equipment includes packaging of various types, evaporators, solvents, and sales management services. It is possible to rent equipment from KushCo Holdings, and the share price directly depends on the state of the cannabis market in the US and Canada.

Corbus Pharmaceuticals Holdings Inc.

Price Today: $0.25.

Capitalization: $31.56M.

American pharmaceutical company based in Norwood, Massachusetts. Spotlight on Corbus Pharmaceuticals – the human endocannabinoid system and the treatment of some diseases by influencing it.

At the initial stage of development, Corbus Pharmaceuticals Holdings, Inc receives a $900,000 grant from Cystic Fibrosis Foundation is sound proof of the prospects of the company’s products.

MediPharm Labs Corporation

Price Today: $0.06.

Capitalization: $17.41M.

Young Canadian cannabis grower; the dried plants themselves, as well as oil and other products, are supplied to the market. Since the summer of 2018, the brand has also been operating in Australia; in June, production began in Victoria, Australia.

At the end of 2018, at the annual Canadian ceremony cannabis Awards, the company received the best Cannabis Startup of the Year award. Despite the project’s youth (work began only in 2015), on October 4, 2018, MediPharm Labs stock started trading on OTCQX.

Zynerba Pharmaceuticals Inc.

Price Today: $1.17.

Capitalization: $52.27M.

It is an American pharmaceutical company developing drugs for treating rare and near-rare neurological, psychiatric and neuropsychiatric diseases. The active substances contained in cannabis are used.

There are already the first results; for example, ZYN 002 was the first drug produced as a gel at the time of development.

There is also ZYN 001, created in the form of a conventional patch; the company has proven the effectiveness of transdermal delivery of the active substance through the skin and continues to work in this direction.

Green Organic Dutchman

Price Today: $0.06.

Capitalization: $46.25M.

A Canadian medical and recreational cannabis manufacturer focuses on sustainable plant cultivation and storage of cannabis products. When growing marijuana, pesticides and chemical fertilizers are not used, and the products are stored in glass containers. A standard set of products is supplied to the market – dried plants, oils, and medicines.

Green organic has a solid production capacity. So, in 2018, construction began on Canada’s most significant cannabis greenhouse.

Cannabix Technologies Inc.

Price Today: $0.29.

Capitalization: $33.02M.

It is a Canadian manufacturer of testers for determining the content of cannabinoids by human breath. Devices like breathalyzers are being developed, Cannabix is cooperating with law enforcement officers, and government orders will ensure the stability of the financial situation.

Also, Cannabix-developed technologies can be used by other cannabis companies to monitor employees’ health.

Innovative Industrial Properties (IIPR)

Price Today: $97.89.

Capitalization: $2.74B.

IIPR stands for REIT (Real Estate Investment Trust); it acquires real estate related to the cultivation of marijuana and the production of preparations based on it. The fund was founded in 2016, and its shares are traded on the NYSE.

Papers Innovative Industrial Properties is listed as a cannabis stock, as the fund works directly with companies involved in the cultivation and processing of medical/recreational cannabis. The REIT management focused on the American market.

The securities of this fund are suitable for dividend portfolios. A feature of all REITs is that they allocate at least 90% of their profits to dividends, and Innovative Industrial Properties is no exception to this rule.

There are funds similar in style of work. This example is given for clarity – you can make money on cannabis by selling it and working with real estate, which marijuana producers need.

Harvest Health & Recreation Inc.

A Canadian company that operates in the US market through subsidiaries. It collaborates with both medical institutions and ordinary consumers of cannabis-based products. The main activity is concentrated in the states of Arizona, California, Florida, Maryland, Pennsylvania and North Dakota. The headquarters is located in Tampa (USA, Arizona).

At the end of 2020, there were reshuffles in the company’s top management- the operating director’s position was abolished, and his functions were redistributed to the rest of the administration. However, this did not affect the company’s place in the market.

The company’s shares are traded in the US on the over-the-counter market. Also, the Harvest Health & Recreation Inc percentage is available on the Canadian exchange Neo Exchange (ticker HARV). Despite a more than 10-fold drop in share price from spring 2019 to spring 2020, the company did not risk going bankrupt. Instead, the business is firmly on its feet due to well-established work in the USA and Canada – the main markets for the sale of cannabis.

How to choose stocks to buy

Step #1 is to scrutinize cannabis companies. It is essential to keep abreast of the latest News about their activities, visit their websites, and do not forget to look at analytics and expert opinions.

To minimize risks, choosing organizations in which cannabis is a share of the business is recommended. For example, this is Abbvie Inc. It is an ordinary pharmaceutical company that produces synthetic cannabinoids for medicinal purposes.

Or you can invest in the shares of a corporation that is not associated with the marijuana market. For example, Kush Bottles ( ticker KSHB, price per share today ) sells cannabis packaging and supplies.

Marijuana stocks are carefully selected, this is a young market, and the risks are higher than with investments in, for example, the S & P 500 or a portfolio of several ETFs.

When selecting shares, several criteria are taken into account

1. A formal analysis is performed on a set of multipliers and evaluated indicators such as P/E, P/S, P/BV, EV, EBITDA, EV/EBITDA, Debt/EBITDA, Debt/Equity, EPS, Quick Ratio, ROE, Net Margin, ROA, Payout (if dividends are paid). The goal is to select the most undervalued securities.
2. Geography of work. At the initial stage of development, the USA and Canada were priority countries due to the peculiarities of the legislation. Industry leaders have taken a share in these markets and later began to expand into the needs of other countries. Investing in stocks of marijuana producers already operating in the US and Canada is more secure. They already have a consumer base, and their financial position is more stable than newcomers.
3. Diversification of activities. It is undesirable for a company to concentrate on only one of the directions, for example, medical or recreational cannabis. Ideally, marijuana producers should also produce food and beverages and diversify their work as much as possible.
4. Direction of activity. Conventionally, companies can be divided into three types – those with a complete production cycle (from cultivation to manufacturing marijuana products), specializing in scientific research, and betting on real estate, which marijuana producers need. You can invest in all listed types, but those who rely on science are less dependent on development, for example, in the recreational area.
5. Political risks. There is still a bias toward marijuana, and there is no guarantee that the trend of legalizing soft drugs will continue. Stricter legislation in this matter, for example, in Canada or the United States, is guaranteed to collapse the market indefinitely. Therefore, the investor needs to be prepared to adjust the portfolio.

If the question of how to invest in marijuana stocks seems too complicated, you can work with the corresponding ETFs.

The largest of these funds is the ETFMG Alternative Harvest is the first cannabis ETF to be listed in the US. Over $1.0 billion under management.

Largest Medical Cannabis Indices ETFs

Ticker	ETF
MJ	ETFMG Alternative Harvest ETF
MSOS	AdvisorShares Pure US Cannabis ETF
YOLO	AdvisorShares Pure Cannabis ETF
THCX	Cannabis ETF
POTX	Global X Cannabis ETF
CNBS	Amplify Seymour Cannabis ETF
MJJ	Indxx MicroSectors Cannabis ETN
TOKE	Cambria Cannabis ETF
MJO	Indxx MicroSectors Cannabis 2X Leveraged ETN
ACT	AdvisorShares Vice ETFs

The volatility of ETFs and stocks of individual companies can be very different, but there is always a high correlation between them. It is because ETFs copy the indices, the baskets of which include the most prominent marijuana producers.

Risks

Cannabis stocks are sometimes called the second Bitcoin, which is partly justified. However, the market is young; securities of this type can grow tenfold or collapse, leaving investors with nothing.

The main risks for investors in marijuana

• Political. The rise to power of cannabis legalization sceptics will slow down the growth of this market and will be bearish for the shares of the respective companies;
• The results of medical studies proving the harm of this drug will also put pressure on cannabis stocks;
• Manipulation with reporting. The cannabis market is young, and some companies may overestimate the scale of their business and distort statistics to attract investors more favourably. There are similar examples – Medbox was convicted of misrepresenting the scale of the business and ceased to exist as a separate company;
• Problems with the development and certification of new types of drugs;
• Dependence of the world market on only two countries – the USA and Canada. Tighter legislation, for example, in Canada will bring down the shares of Canadian marijuana companies, and American producers will also suffer.

Of these risks, the most significant issue is the legalization of soft drugs globally and in the United States at the federal level.

Recommendations

Those wishing to invest in marijuana stocks should adhere to the following rules

• Do not focus only on industry leaders and multipliers; leaders change quickly at the initial stage of market development. When selecting stocks, you need to evaluate infrastructure, partnerships with dispensary networks and other factors that can ensure growth in the future;
• Diversify portfolio. It should include both “full cycle” companies (growing marijuana – its processing – the manufacture of products and medicines – their sale) and more “narrow”, specializing, for example, in research, REIT;
• You need to be ready to adjust the portfolio quickly;
• You can buy ETFs if self-selection of stocks seems too difficult.

It can extend these rules to other areas of investment, but they are essential in the case of marijuana.

Prospects for investing in marijuana stocks

Several US states have legalized cannabis in the medical field, opening more opportunities for producers. But, in many countries, marijuana is still considered a narcotic substance with prohibitions and criminal liability. Therefore, at the moment, it should consider investments in marijuana (cannabis) stocks for the long term with buying on correction or with short-term speculation on the News, but without leverage and in compliance with risk management rules.

Conclusion

Cannabis stocks were roughly the same as Bitcoin in 2015-2016. The world is gradually beginning to recognize the future of this market, the growth potential is impressive, but the final fate of cannabis on a global scale has not yet been decided.

So far, the global trend allows us to hope for the growth of the marijuana market. In the US, Biden is in power; he refers to those who favour cannabis. Earlier, the UN excluded marijuana from the list of hard drugs. However, the trend to legalize soft drugs has gone beyond the US and Canada and is gaining momentum.

The future growth of cannabis stocks could overtake the stock market several times. To take advantage of this chance, you need to buy shares now.

How Bitcoin is affecting the cannabis industry

There are many reasons for the cannabis industry to see Bitcoin as a way to develop and improve customer relationships.

The cannabis industry provides opportunities for investors. Thanks to Bitcoin, investors can benefit from the sector’s growth like never before.

A solid understanding of the cannabis industry is a must. Once you know all the ins and outs of the sector, it’s easy to understand how it can use Bitcoin to accelerate the industry’s growth.

Bitcoin can indeed spur the growth of the cannabis industry. It can do it in several ways

Secure transactions

Bitcoin could play a key role in cannabis retailers’ e-commerce strategy. In any eCommerce business, consumer trust is essential to increase sales and conversions. By offering buyers the option to pay with Bitcoin, marijuana sellers can build relationships with their buyers. The retailer can also help customers secure their transactions without the oversight of a traditional verifier.

And cannabis retailers will increasingly be able to use Bitcoin to secure their transactions. For example, a consumer can buy marijuana products and accessories using Bitcoin to pay without the risk of a refund. The consumer can immediately deliver to the cannabis seller and receive a receipt. It inspires confidence in the cannabis seller. As stated earlier, this can help the retailer build long-term customer relationships.

Tax incentives

In 2019, a group of Blockchain activists of Advocacy The Coalition (BAC) sponsored a cannabis and Bitcoin bill in California. Through the Bill, legal cannabis growers in California can actively use bitcoin and other cryptocurrencies to pay taxes. 

This Bill is currently under discussion. Legal California marijuana businesses could instantly send Bitcoin payments to cover their taxes if the Bill is approved. In addition, these businesses can track their Bitcoin tax payments on a digital ledger to protect against future tax issues. In addition, keeping a close eye on the market will allow them to use bitcoin more efficiently and save on their tax payments.  

Brand awareness

The legalization of cannabis is underway throughout the United States. Despite this, legal cannabis retailers should seize every opportunity to promote their brands. As a result, these retailers can take advantage of unique marketing opportunities. In this way, they can launch marketing campaigns that arouse broad interest among consumers.

Cannabis retailers may offer discounts to consumers making payments in Bitcoin. In addition, it will allow them to offer various promotions to attract consumers’ attention further. And consumers, in turn, will be able to take advantage of these promotions to save on cannabis purchases. 

Investment opportunities

Cannabis retailers should evaluate short and long-term investment opportunities. These retailers may consider stocks, bonds, and other traditional financial investments. At this stage, they can also assess investments in Bitcoin.

Cryptocurrency experts are predicting an increase in the price of Bitcoin in 2022 and beyond. As a result, legal marijuana sellers can buy Bitcoins and add them to their investment portfolios. In the coming years, they may find that Bitcoin provides a significant profit for investment.

 How to work better with Bitcoin in the cannabis industry  

 It can buy Bitcoin at any time. However, it is essential to understand bitcoin before investing and using it to grow financially in the cannabis industry.

Legal retailer Cannabis can use Bitcoin to support their daily operations. However, to realize the total value of a Bitcoin investment, a retailer must plan accordingly.

Bitcoin Bottom Line in the Cannabis Industry

Bitcoin could have far-reaching implications for the cannabis industry. 

Legal cannabis sellers, having started working with Bitcoin, will quickly be convinced of the benefits of Bitcoin for the development of their business. 

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