Legal Weed and Revenue Share from an Already Successful European Marijuana Company.
NOTE: This is an edited version of a story that originally appeared in my Substack Ministry of Alpha newsletter.
Marijuana and money — two of my favorite themes in the NFT space.
If you’ve read my musings for a while, or seen some of my tweets, you might know that I see lots of potential in marijuana-focused NFTs.
Now comes a new project I’m quite high on, no pun intended.
That project is Dope Growers’ Society, and it stands apart in the world of weed-based companies.
Dope Growers already has a real business behind it. The company has been around for five years and since 2021 has been supplying the German medical-marijuana market with cannabis grown at the company’s nearly 54,000-square-foot Portugal farm.
That business — fully licensed — is profitable and growing as demand for high-quality medical cannabis continues to expand. Indeed, the company’s founder, known as Pitone on Discord, tells me they already have supply contracts in place for the next five years, and “we could sell more if we had the cannabis.”
As good as that sounds, there’s a much bigger reason to be bullish on Dope Growers’ Society: Germany is the in the process of legalizing recreational marijuana. That could/should happen this year, in 2023, and it promises to be a watershed moment in European cannabis.
Germany, because of its economic heft, is the continental trendsetter. Once weed is legalized on a recreational level in Europe’s biggest economy, we’re going to see governments all across Europe legalizing recreational weed. And it only makes sense they would do so. Weed is a vice product, no different than cigarettes and beer. Demand is large, widespread, and highly inelastic, meaning consumers consume regardless of the economic situation. Which means governments no doubt see the tax revenue potential that legal-weed sales would generate, and which can help heavily indebted European countries better manage their increasing debt obligations, even if only at the margin.
We’ll come back to Europe in a moment. But first, here’s why all of this has me excited: Money!