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MasterCard moves to mute debit buys

Daily Recap

Canadian ‘cannabis’ company Tilray reported earnings this morning, which beat street estimates. Matt Lamers reminds us that the company lost C$1.9B this fiscal year vs. C$575,000 last year but, given the field position and toxic sentiment, it was enough to pop the stock 24% before it settled +15% for the day (-28% YTD).

The rest of the sector lifted in sympathy, at least initially, before Pavlov’s silent dog whistle sounded for the remaining sector-specific investors looking to exit before August. Their anxiety amplified at 12:35 ET when these Bloomberg headlines hit:

*MASTERCARD DEMANDS SHUTDOWN OF CANNABIS BUYS ON ITS DEBIT CARDS

*MASTERCARD SENDS CEASE-AND-DESIST LETTERS TO PAYMENT PROCESSORS

While Mastercard and Visa already have long-established anti-cannabis policies in place, this latest salvo, if enforced, would mean more cash, more senseless risk for employees at state-legal operations and an even more urgent need for SAFE Banking.

In other industry news, the majority of Ohio voters support cannabis legalization (a few more signatures are needed to qualify for the Nov election), Minnesota adult-use cannabis begins next week, the ACLU is advocating on behalf of Florida cannabis, a key House committee cleared cannabis amendments for floor votes, Montana beat an anti-cannabis campaign, Kevin Durant was high af when he pushed the NBA to stop testing, cannabis CEO pay packages are out, and we explore July’s Final Countdown.

All that—including a deeper dive on Mastercard and canna markets—below…

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $29M

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