Cannabis Companies Are Also Announcing Bitcoin Adoption

LEEF Brands, a Canadian-based cannabis company, announced the adoption of Bitcoin (BTC) as a treasury reserve asset. This move makes it one of the first publicly traded companies in the industry to do so.

As part of the strategy, the company entered into an agreement with investment firm Canaccord Genuity to act as lead agent in a private placement offering of up to approximately $5 million in convertible bonds.

The net proceeds raised under this offering are intended to acquire Bitcoin, fund growth opportunities, capital expenditures and for general corporate purposes, according to the company.

To date, the entity has already acquired 3,937 Bitcoin, at an average cost of $88,200, secured in an institutionally delegated multi-signature cold wallet, they reported.

To lead LEEF’s Bitcoin diversification strategy, it has appointed Jamie Warm as vice president of strategy. According to the company, Warm has experience in both the cannabis and BTC sectors. He will be responsible for fundraising, exchange and custody management, LEEF’s operational integration into the Bitcoin ecosystem, and will engage in PR and international relations opportunities, the company says.

“Cannabis needs Bitcoin,” Warm said. “The strategy aims to enhance shareholder value while providing financial resilience in a challenging industry.”

For his part, Micah Anderson, CEO of LEEF Brands, commented on the decision: “Adding BTC to LEEF Brands’ treasury can amplify the company’s growth and value. There are many similarities between the cannabis industry and the BTC industry and fundamentally.”

Another company joins the Bitcoin reserve rush

With its announcement, LEEF Brands joins the rush for strategic Bitcoin reserves, following the example of many other companies around the world and from various sectors that have announced the creation of their own BTC treasuries, as reported by CriptoNoticias.

This boom is driven by the example of MicroStrategy, the publicly traded company with the largest amount of BTC under management, with more than 430,000 coins .

Following the announcement, LEEF Brands shares, which are traded on the Canadian Stock Exchange, rose by 29%, from $0.17 to $0.22 in a matter of hours. This move reflects the market’s confidence in the company’s new strategic direction towards integrating BTC into its financial operations.

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First published in CRIPONOTICIAS. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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