Freight Applied sciences (FRGT), a $4.8 million market cap logistics tech agency targeted on cross-border commerce between the U.S. and Mexico, has entered an settlement to purchase as much as $20 million within the Official Trump Token (TRUMP) to construct out its crypto treasury.
The firm stated it secured the funding by way of a convertible notice facility with an institutional investor, with an preliminary $1 million tranche already dedicated. The capital will probably be used solely to amass TRUMP tokens, making it one of many first publicly listed corporations to take action.
The choice follows a separate funding in AI-linked FET tokens at present valued at $8 million, which the corporate says helps AI instruments used throughout its logistics platforms.
Shopping for digital property for publicly traded corporations is not a brand new technique.
Michael Saylor championed it with a bitcoin technique, and others, reminiscent of Semler Scientific (SMLR), adopted by way of. Most lately, Cantor (CEP) is making a splash with large dry powder to do the identical. In the meantime, corporations reminiscent of Sol Methods (HODL) and Janover (JNVR) are shopping for up SOL tokens to provide traders publicity to the cryptocurrency.
The development can also be choosing up in Japan, the place lodge agency Metaplanet has lately hit 5,000 BTC on its steadiness sheet and issued $25 million in bonds to fund further purchases. Smaller companies, together with Worth Creation, Remixpoint, NEXON, Anap Holdings, and WEMADE are additionally accumulating the cryptocurrency.
Nonetheless, Freight’s mandate is barely completely different: to affect the U.S.-Mexico commerce deal amid President Trump’s all-out commerce warfare.
“We consider that the addition of the Official Trump tokens are a superb approach to diversify our crypto treasury, and likewise an efficient approach to advocate for truthful, balanced, and free commerce between Mexico and the US,” Javier Selgas, the corporate’s CEO, stated in a press launch on April 30.
Whereas such a technique may assist an organization reminiscent of Freight, influencing presidential choices by shopping for a memecoin may convey up the query of battle of curiosity. Only recently, Trump stated he’ll maintain a personal dinner with high token holders, drawing outcry from Democratic lawmakers, who cited the president’s involvement with the token as potential grounds for impeachment.
On April 25, Sen. Jon Ossoff (D-Ga.) pointed to the crypto venture providing its high holders an invite to a dinner occasion with President Trump, calling it a transparent case of promoting entry to the presidency.
For Freight, whose inventory value plunged practically 90% within the final 12 months and is closely tied to cross-border buying and selling, it appears this may be one of the best ways to maintain share costs afloat.
“On the coronary heart of Fr8Tech’s mission is the promotion of productive and lively commerce between the US and Mexico. Mexico is the US’ high items buying and selling companion, with Mexico being the main vacation spot for US exports and the highest supply for US imports,” Selgas added.
After saying the transfer, Freight Applied sciences’ shares jumped over 111% earlier than the closing bell on Friday. Nonetheless, in after-hours buying and selling, the inventory plunged 21.6%.
Freight Applied sciences’ product lineup features a suite of purposes, starting from cross-border freight reserving to transportation administration, all aimed toward modernizing the movement of products in North America.
Different corporations have made investments within the crypto area linked to the U.S. President. Final month, DWF Labs invested $25 million within the decentralized finance protocol backed by Trump and his household, World Liberty Monetary (WLFI), because it moved to determine a bodily presence within the U.S.
The funding provides DWF Labs a governance stake within the venture, which has been accumulating numerous cryptocurrencies and is ready to quickly launch a stablecoin backed by short-term U.S. Treasury payments and different money equivalents, referred to as USD1.
TRUMP tokens are buying and selling at $12.7, up simply 0.1% for the day and 42% within the final 30 days.
Learn extra: Why Trump’s Tariffs Might Truly be Good for Bitcoin
