Leading cannabis compliance and tracking company Metrc entered into a new partnership with its rival BioTrack, sparking speculation about the future of marijuana tracking in the United States.
The recent announcement has left many licensed operators and state regulators uncertain about its implications, particularly in New York, where a functioning seed-to-sale system is still pending for the state’s $1.5 billion cannabis market.
For years, the U.S. cannabis industry has relied mainly on two Florida-based firms to manage its product tracking systems. Metrc, based in Lakeland, currently holds contracts with twenty-nine states, requiring all licensed operators in these areas to use its RFID-tag-based tracking software. BioTrack, headquartered in Fort Lauderdale, serves eight states but has been losing market share despite acquiring smaller competitors, including MJFreeway in 2024.
Under the new partnership, a new company, BT Government, will handle BioTrack’s government contracts, operating independently from BioTrack and Metrc. The entity will be led by BioTrack’s COO, Moe Afaneh, while BioTrack continues to provide point-of-sale and other commercial software services.
Financial terms of the partnership were not revealed. However, state records show that Metrc LLC operates independently from its parent, Metrc Inc., whose leadership includes notable investors such as Karan Wadhera of Casa Verde Capital, a cannabis-focused investment firm linked to Snoop Dogg.
Industry observers see potential benefits in the collaboration. Poseidon Investment Management managing director Emily Paxhia noted that marijuana businesses currently navigate a “patchwork” of different tracking systems, depending on state rules. The new partnership, she suggested, might simplify operations for multi-state operators. Still, it’s unclear whether this move represents a merger or simply a functional partnership.
BioTrack, now owned by Alleaves, currently holds seed-to-sale contracts in Connecticut, Arkansas, Delaware, Florida, Hawaii, New York, North Dakota, New Mexico, and Virginia. However, Metrc has been chipping away at BioTrack’s market share. Illinois recently switched from BioTrack to Metrc, and Massachusetts renewed its Metrc contract earlier this year.
New York’s deal with BioTrack, signed in late 2022, was worth $1.2 million over five years, far less than the $113 million California agreed to pay Metrc for four years. Still, operators have raised concerns over BioTrack’s tag pricing requirements, which they say would raise costs unnecessarily.
Following the partnership announcement, New York regulators temporarily halted compliance requirements while they assess the impact. Cannabis operators in other BioTrack states, such as Connecticut, are also waiting for guidance.
Some businesses speculate the partnership might eventually allow states with BioTrack contracts to switch to Metrc’s platform, which they see as more efficient. But for now, the industry is left with more questions than answers—especially about pricing, timelines, and technology updates.
The marijuana industry, including players across the border like SNDL Inc. (NASDAQ: SNDL), will be watching for any additional information provided about this partnership as it could influence the trajectory of operations within the industry.
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