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 corporate mentioned it secured the funding via a convertible observe facility with an institutional investor, with an preliminary $1 million tranche already dedicated. The capital will probably be used solely to accumulate 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 the moment valued at $8 million, which the corporate says helps AI instruments used throughout its logistics platforms.
Shopping for digital belongings for publicly traded corporations is not a brand new technique.
Michael Saylor championed it with a bitcoin technique, and others, equivalent to Semler Scientific (SMLR), adopted via. Most lately, Cantor (CEP) is making a splash with big dry powder to do the identical. In the meantime, corporations equivalent to Sol Methods (HODL) and Janover (JNVR) are shopping for up SOL tokens to present buyers publicity to the cryptocurrency.
The development can be choosing up in Japan, the place lodge agency Metaplanet has lately hit 5,000 BTC on its stability sheet and issued $25 million in bonds to fund extra purchases. Smaller corporations, together with Worth Creation, Remixpoint, NEXON, Anap Holdings, and WEMADE are additionally accumulating the cryptocurrency.
Nevertheless, Freight’s mandate is barely completely different: to affect the U.S.-Mexico commerce deal amid President Trump’s all-out commerce warfare.
“We imagine that the addition of the Official Trump tokens are a superb strategy to diversify our crypto treasury, and in addition 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 method may assist an organization equivalent to Freight, influencing presidential choices by shopping for a memecoin may convey up the query of battle of curiosity. Only recently, Trump mentioned 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 undertaking 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 worth plunged almost 90% within the final 12 months and is closely tied to cross-border buying and selling, it appears this is perhaps the easiest way to maintain share costs afloat.
“On the coronary heart of Fr8Tech’s mission is the promotion of productive and energetic commerce between america and Mexico. Mexico is america’ 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 asserting 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 functions, starting from cross-border freight reserving to transportation administration, all geared toward modernizing the stream of products in North America.
Different corporations have made investments within the crypto house 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 varied 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 May Truly be Good for Bitcoin
