Generation Hemp, Inc. (OTCMKTS: GENH) is one of the most diversified pure play hemp picks on the public markets. Last week, Research and Markets released a report stating “the global industrial hemp market size is expected to reach USD $16.75 billion by 2030, registering a CAGR of 16.8%.” GENH may be one of the largest beneficiaries of this growth trajectory. Make sure to start your research today.
There are two major factors in this growth identified by Research and Markets that GENH will be a part of:
- The animal care segment accounted for a significant revenue share in 2021 on account of the high demand for healthy bedding. Milled hemp stalks (hurd) in animal bedding is a healthy premium, as its low dust properties make it highly preferable in mitigating respiratory issues for animals that can be caused by other bedding.
- The market for industrial hemp in North America is expected to grow at the fastest CAGR from 2022 to 2030 owing to the legalization of hemp production coupled with the technological advancements in harvesting and use of hemp fiber and hurd.
Another factor that is not always highlighted is the distinction between hemp grown for cannabinoids that drive the CBD market and hemp for applications in industry, like auto parts, concrete (hempcrete) and other building materials, textiles, biofuels, and thousands more. This segment of the U.S. industrial hemp market has been the slow and steady player and what may have the longest term potential as infrastructure continues to develop.
GENH’s ANIMAL BEDDING
GENH’s Rowdy Rooster is the company’s animal bedding product that is its way of being a part of what is projected to be a significant revenue driver for industrial hemp.
Animal bedding can be a great product, but in traditional bedding materials, harmful dust, ineffective absorbency, and acidity pose a risk to the animals. For GENH’s Rowdy Rooster, this is not the case. Studies have proven hemp hurd bedding as one of the most absorbent, non-acidic materials, with low dust. It inhibits the growth of bacteria and mold that animals may breathe in from those dusty competitors. Not only does GENH not use harmful chemicals while manufacturing the bedding, but hemp does not require harmful chemicals and pesticides as a plant to grow. The bedding is perfectly safe for animals and humans.
An additional upside to going green with its byproduct is the revenue generated from the sale of products such as animal bedding, and it’s a great market to enter. From 1994 to 2021 US spending on pet products has grown from $17 billion to well over $100 billion. This growth is expected to continue. One of the key drivers to this growth is the ‘bedding & litter’ segment. Rowdy Rooster is well-positioned to take advantage of this growing market due to GENH generating millions of pounds of hemp biomass from its hemp processing operations in Kentucky.
GENH IS PART OF THE FASTEST-GROWING MARKET IN HEMP
GENH is extremely diversified in its use of hemp hurd. The Rowdy Rooster animal bedding is just one product, with a number of additional products to be announced in the calendar year 2022.
One of these new products recently announced by Generation Hemp (OTCMKTS: GENH) comes off a new partnership with well-known brand Gas Monkey Garage, Generation Hemp will manufacture a spill absorbent, sourced from hemp hurd and sold under the Gas Monkey brand.
In what may be one of the most exciting and profitable uses of hemp is the company’s new crypto (Bitcoin) mining project(s).
GENH has partnered with Massachusetts-based Cryptech Solutions, the largest volume reseller of Bitcoin Application-Specific Integrated Circuit (ASIC) Miners in North America, to build ‘diversified green energy’ plants and Bitcoin mining farms that utilize hemp biomass as a power source. Last Friday, GENH announced the first bitcoin mining facility through a Joint Venture ‘JV’ to be installed at Generation Hemp’s 48,000 sq. foot facility in Hopkinsville, Kentucky, which also houses a hemp drying operation through its wholly-owned subsidiary, GENH Halcyon Acquisition.
This new plant will be able to generate approximately 2 megawatts (‘MW’) of electricity which would allow for up to 576 mining units. Assuming 100 TH/s per unit, GENH and Cryptech Solutions would be able to generate $3.65 Million in Bitcoin revenues in 1 year of operations, assuming the price of Bitcoin doesn’t drop beyond its current low. This is just the first test facility, and if this is scaled up, the revenues could be enormous.
GENH’s PROFITABLE FOUNDATION
GENH can be so varied in its offerings because of its foundation as a top-tier midstream industrial hemp company. GENH operates through its wholly-owned subsidiary, GENH Halcyon Acquisition, LLC, at a facility located in southwestern Kentucky.
GENH’s modular drying operation uses four belt dryers. Each dryer is equipped with variable temperature settings that provide for a more efficient drying process while protecting the hemp plant’s valuable cannabinoid and terpene properties. These modular systems can produce approximately 1,200 pounds of uniformly dried hemp per hour.
In 2020, the company processed over 6 million pounds of wet hemp for various Kentucky and Tennessee clients. In 2021, the company received over 11 million pounds of wet hemp in its facility and processed only a fraction of that in order to wait for higher prices. In 2022, the company anticipates a record year with the amount of hemp it has maintained in inventory. This is due to adding new customers who have brought their product to GENH Halcyon Acquisition.
START YOUR RESEARCH TODAY
With the hemp market set to grow at such a fast rate, GENH is uniquely positioned to benefit, its investors will too. Make sure to start your research today.
More on GENH here: http://fzm.fce.mywebsitetransfer.com/2022/03/08/generation-hemp-uses-hurd-to-clean-spills-and-comfort-animals/
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