Freight Applied sciences (FRGT), a $4.8 million market cap logistics tech agency centered 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 mentioned it secured the funding via a convertible word 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 firms to take action.
The choice follows a separate funding in AI-linked FET tokens presently valued at $8 million, which the corporate says helps AI instruments used throughout its logistics platforms.
Shopping for digital property for publicly traded firms is not a brand new technique.
Michael Saylor championed it with a bitcoin technique, and others, similar to Semler Scientific (SMLR), adopted via. Most not too long ago, Cantor (CEP) is making a splash with large dry powder to do the identical. In the meantime, firms similar to Sol Methods (HODL) and Janover (JNVR) are shopping for up SOL tokens to offer traders publicity to the cryptocurrency.
The pattern can also be selecting up in Japan, the place lodge agency Metaplanet has not too long ago hit 5,000 BTC on its steadiness sheet and issued $25 million in bonds to fund further purchases. Smaller corporations, together with Worth Creation, Remixpoint, NEXON, Anap Holdings, and WEMADE are additionally accumulating the cryptocurrency.
Nevertheless, Freight’s mandate is barely totally different: to affect the U.S.-Mexico commerce deal amid President Trump’s all-out commerce conflict.
“We imagine that the addition of the Official Trump tokens are a wonderful strategy to diversify our crypto treasury, and likewise an efficient strategy to advocate for truthful, balanced, and free commerce between Mexico and the US,” Javier Selgas, the corporate’s CEO, mentioned in a press launch on April 30.
Whereas such a technique may assist an organization similar to Freight, influencing presidential selections by shopping for a memecoin may carry up the query of battle of curiosity. Only recently, Trump mentioned he’ll maintain a non-public dinner with prime 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 undertaking providing its prime 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 worth plunged almost 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 energetic commerce between the US and Mexico. Mexico is the US’ prime 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. Nevertheless, 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 move of products in North America.
Different firms 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 offers DWF Labs a governance stake within the undertaking, which has been accumulating numerous cryptocurrencies and is about 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 May Truly be Good for Bitcoin
