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CryptoCann™ Report: Overstock to pay some Ohio taxes in Bitcoin; Oregon ended the year with 1.3M pounds of unsold cannabis flower

The leftover dried cannabis inventory may pressure Oregon growers to lower prices

Overstock website on a laptop
Overstock said in November that it planned to sell its retail business to focus on blockchain

The Crypto Report

Crypto start-up DX.Exchange announced plans to launch a token-based trading platform, allowing customers to indirectly buy shares of Nasdaq-listed stocks.

Customers can use fiat or cryptocurrency to buy crypto tokens that represent shares in various tech companies, including Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN), Facebook Inc (NASDAQ:FB) and Tesla Inc (NASDAQ:TSLA)

READ: CryptoCann™ Report: Fortnite merch store accepts Monero; Colorado marks fifth year of legalized marijuana

“Henceforth, when they become a token holder, they own stocks or portions of the company’s stock, as the tokens are backed 1:1 to the real-world stocks. That makes them entitled to the same cash dividends that the stocks are worth,” said COO Amedeo Moscato in an interview with CoinDesk.

The Estonia-based exchange has previously partnered with Bloomberg to support its cryptocurrency center.

In other crypto news, Ohio became the first US state to allow taxes to be paid in Bitcoin back in November and Overstock.com Inc (NASDAQ:OSTK) may be the first national company to do so.

The discount e-commerce retailer said it will pay a portion of its Ohio state business tax in Bitcoin using the state’s OhioCrypto platform, as per a report by The Block.

“We have long thought that thoughtful governmental adoption of emerging technologies such as cryptocurrencies (when accompanied by non-restrictive legislation over these technologies) is the best way to ensure the U.S. does not lose our place at the forefront of the ever-advancing global economy,” said Overstock CEO Patrick Byrne in the company’s press release.

The company partnered with Ohio Treasurer Josh Mandel who applauded the company for embracing the technology.

Overstock announced in November that it planned to sell its retail business to focus on blockchain.

The Cann Report

Michigan voted in favor on Proposal 18-1, a bill to legalize the use of recreational marijuana for people 21 years of age or older, in the last midterm elections.

The bill also legalized commercial sales of cannabis through state-licensed retailers, subject to a 10% tax.

READ: The Green Organic Dutchman to use EnWave’s cannabis drying tech, share royalties with Tilray

Unlicensed medical cannabis businesses had until December 31 to close or risk not receiving a permanent license.

More than 70 dispensaries across the state closed at the end of the year, losing thousands in revenue, as per a Marijuana Business Daily report.

While some of the companies have pending applications on the desk of the licensing board, others have reportedly had their applications denied.

In Oregon, the state is starting the year off with 1.3 million pounds of unsold cannabis flower, as per a Willamette Week report.

The report estimates that it would take 7.8 years to smoke all of it if consumers continued to purchase legal cannabis at the same rate as in 2018.

Oregon consumers smoked around 166,000 pounds of legal cannabis last year, according to the report.

The remaining dried flower would reportedly fill 589,670,081 1-gram pre-rolls and weigh the same as 359 2019 Subaru Outbacks.

The leftover inventory has led to worries of lowered prices and increased pressure on growers looking to turn a profit.

“The impact of being over-inventoried is that suppliers into the system must lower prices in order to sell into the market,” Beau Whitney, an economist who studies the cannabis industry for New Frontier Data, told Willamette Week.

“There is no real short-term solution to this. So this is going to be the environment for quite some time,” he added.

 

--Contact Lenore Fedow at [email protected]

--Follow her on Twitter@LenoreMariee

 

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