BlackRock Buys More Tilray Stock. Survey says...
Yep, you read that right. BlackRock added 8% more shares of Tilray to its stash between December 31, 2024 and March 31, 2025.
BlackRock is the world’s largest investment management firm. Publicly traded Tilray has the #2 market share position in Canada; they also have sales and operations around the world, including US craft beer assets.
The purchase is a good development though I would counsel people not to get too excited.
BlackRock’s recent investment was small and still totals only US$1.8M in value. This holding and its returns is not going to move the needle of a firm with US$11.5T in assets under management.
But it does beg the question:
Why did BlackRock ante up again?
Read what you want into this purchase but here are a few ideas from an outsider. (Note: I am not a Tilray shareholder, fanboy or service provider to the company).
➡️ Blackrock wants to continue learning about the cannabis industry with one of the largest, publicly traded (and most liquid) LPs. This is a 'dipping your toe in the lake’ strategy.
➡️ In anticipation of legalization or SAFER, BlackRock’s share purchase could be another chapter in a formal cannabis investment strategy. Of note, their Tilray stake remains up versus their initial purchase in 2019.
➡️ There could be BlackRock-specific or other mundane reasons for this move, such as:
💪 Managing this investment is a low-risk, training opportunity for a junior portfolio manager.
🕶️ Or someone important at BlackRock is friends with the Tilray CEO or a Director.
Who knows the real purpose – except for Blackrock.
I believe the share purchase is important for 5 reasons.
1️⃣ Symbolically, this investment could buttress Tilray’s profile and credibility among investors.
2️⃣ BlackRock is a smart, brand-savvy investment company. If they thought cannabis was a dog shit, unredeemable sector, they would have no qualms about pausing stock purchases or dumping their entire position at a loss for that matter.
3️⃣ This share purchase shows that some major institutional investors continue to sniff around the cannabis space. They would be remiss if they didn’t.
4️⃣ By virtue of their size and authority, BlackRock has influence with their peers as well as the capital markets ecosystem including vital asset servicers.
5️⃣ We should be happy for any LP who can snag and keep institutional capital through the sector’s current travails.
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