Freight Technologies Inc, a cross-border logistics company, announced that it is offering $20 million in shares to purchase TRUMP memecoins for a MicroStrategy-like treasury.
The company's justification for this move has almost nothing to do with Trump or cryptocurrencies. Instead, the report focuses on the impending tariffs between the United States and Mexico, which could significantly impact the company's operations.
Freight Technologies invests in Trump Company
Since its debut, the 'Trump memecoin' has caused a lot of controversy. A large part of the president's net worth is tied to cryptocurrencies, and both experts and former regulators are concerned about the potential corruption of Trump.
The recent decision by Freight Technologies to create a $20 million fund for Trump fuels these concerns. Specifically, a press release from Freight highlights the reason for its $20 million investment in TRUMP.
Briefly discussed the company's interest in AI developments and Web3 and how Freight will organize these purchases. However, the press release primarily describes how Trump's tariffs will affect the company's net profits:
CEO Javier Silgas stated, 'The essence of our mission is to promote fruitful and active trade between the United States and Mexico. Mexico is the largest trading partner of the United States in goods. We believe that adding official Trump tokens is an effective way to advocate for fair, balanced, and free trade between Mexico and the United States.'
Freight Technologies is heavily involved in cross-border shipping with Mexico; their AI experiences aim to enhance this trade. In short, the trade war with the United States' southern neighbor could significantly harm the company's ability to continue operations.
However, President Trump has already approved several tariff exemptions for specific companies. To be clear, Freight's statement did not include a direct appeal to Donald Trump for such an exemption. However, reports claimed that many cryptocurrency companies received direct or indirect legal benefits for donating to his inauguration.
According to Fortune magazine, some companies have achieved this goal after donations of just $100,000. Would a $20 million amount catch your interest? It is difficult to make specific statements, but Freight's behavior regarding the Trump deal seems unusual.
Most of his justifications for this purchase revolve around trade relations between the United States and Mexico. The company's press release briefly describes Trump as 'an excellent way to diversify our cryptocurrency holdings,' but this is its only justification unrelated to tariffs.
However, if Freight were to try to petition the president, it might request the complete removal of Mexican tariffs. There is nothing to suggest he wants the exemption as long as tariffs remain in place. In any case, this Trump purchase could backfire on Freight's stock price.
The company first released this press statement on April 30, but it began circulating on cryptocurrency-focused social media on the afternoon of May 1. As news spread in these circles, Freight Technologies' stock dropped by more than 20%.
In the future, it will be important to closely follow this story. Companies have started creating MicroStrategy-like plans for assets like Solana. While Freight Technologies is the first company to do this with Trump, it may not be the last.