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 that field to take this step.
As part of the strategy, the company arrive to an agreement with investment firm Canaccord Genuity to act as lead agent in a private placement offering of up to approximately USD 5 million in convertible bonds.
The net proceeds raised under that offering are intended to acquire bitcoinfund growth opportunities, capital expenditures and for general corporate purposes, according to the company.
To date, the entity has already acquired 3,937 bitcoinat an average cost of $88,200, secured in a multi-signature cold wallet, institutionally delegated, as reported.
To lead the bitcoin diversification strategy, LEEF appointed Jamie Warm as vice president of strategy. According to the company, Warm has experience in the cannabis and BTC sectors. He will be responsible for fundraising, exchange and escrow management, the operational integration of LEEF into the bitcoin ecosystemand will participate in public relations 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,” the executive noted.
For his part, Micah Anderson, CEO of LEEF Brands, commented on the decision: “Adding BTC to LEEF Brands’ treasury can amplify the growth and value of the company. There are many similarities between the cannabis industry and the BTC industry and fundamentally.”
Another company joins the bitcoin reserve fever
With its statement, LEEF Brands joins the fever of bitcoin strategic reserves, following the example of many other companies around the world and from various sectors that have announced the formation of their own treasuries in BTC, as CriptoNoticias has reported.
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 29%, going from $0.17 to $0.22 in a matter of hours. This move reflects market confidence in the company’s new strategic direction towards integrating BTC into its financial operations.
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