Freight Technologies Inc., a cross-border logistics company, has announced a $20 million stock offering to purchase TRUMP meme coins, emulating the MicroStrategy model for its treasury.
The company says its decision is less about TRUMP or cryptocurrency and more about the upcoming U.S.-Mexico tariffs that threaten business needs.
TRUMP meme coin faces scrutiny over potential misuse of president’s crypto wealth
The TRUMP meme coin has been controversial since its launch. Much of the President’s cash is wrapped up in crypto. An influential group of experts and former regulators have said the coin raises concerns about potential misuse.
Freight Technologies announcing they plan to spend $20 million on constructing TRUMP Treasury has only added to that concern.
The company’s press release provides insight into the investment’s reasoning. While it briefly touches on Freight’s interest in AI and Web3 technologies, the main focus is on how U.S.-Mexico trade tariffs might affect the company:
“At the heart of our mission is the promotion of productive and active commerce between the United States and Mexico. Mexico is the United States’ top goods trading partner. We believe that adding Official TRUMP tokens is an effective way to advocate for fair, balanced, and free trade between Mexico and the U.S.,” said CEO Javier Selgas.
Freight Technologies’ investment sparks speculation over U.S.-Mexico tariffs and stock slide
Freight Technologies plays a key role in cross-border shipping with Mexico and is using AI to optimize trade between the two nations.
The company sees the potential for a trade war with Mexico to disrupt its operations severely. Although President Trump has previously granted tariff exemptions to certain businesses, the company’s statement does not specifically appeal to him for such a carve-out.
Reports suggest that some crypto companies received indirect legal benefits after donating to Trump’s inauguration fund, with some donations as small as $100,000. So, could Freight’s $20 million investment make an impression?
While it’s hard to make definitive claims, the company’s actions surrounding the TRUMP deal raise eyebrows—the majority of its reasoning for the purchase centers on U.S.-Mexico trade relations.
The press release briefly mentions that the TRUMP tokens could help diversify the company’s crypto holdings, but this is the only mention unrelated to tariffs.
Suppose Freight Technologies is indeed attempting to influence the President. In that case, it seems likely that the company would prefer the Mexico tariffs to be removed entirely, not just seek an exemption for itself.
At any rate, this TRUMP buy could prove to be bad news for Freight’s stock. The press release was first written on the 30th of April but attracted much attention in the crypto circles on the 1st of May. As the headlines spread, the company’s stock plunged more than 20%.
This is one to watch closely. More companies are creating Strategy-style plans around cryptocurrencies. Freight Technologies may be among the first, but they likely won’t be the last.
Trump’s meme coin surges 58% after exclusive dinner invitation to top holders
President Trump’s meme coin, which had dropped 88% from its recent peak, experienced a surge last Wednesday after the coin’s website invited the top 220 holders of the digital token to an “intimate private dinner” with the president.
Following the dinner invitation posted on the $TRUMP meme coin website and Twitter account, the coin’s value spiked by $5.32, or 58%, reaching $14.32 by Wednesday afternoon. This increase, however, only partially offset the coin’s significant drop from its high of $75.35 on January 19, the day before Trump’s inauguration.
The dinner invitation promises $TRUMP coin investors the chance to “Hear close-up, from President Trump, about the future of Crypto!” Trump, who has expressed plans to make the U.S. the global cryptocurrency hub, has also launched several digital ventures, including NFTs branded as “Trump digital trading cards” and a cryptocurrency platform called World Liberty Financial.
According to the Trump coin website, CIC Digital LLC, an affiliate of The Trump Organization, and Fight Fight Fight LLC together hold 80% of the meme coin supply. Fight Fight Fight is a Delaware-based LLC, as reported by the Wall Street Journal.
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