Houston, TX – Freight Technologies (NASDAQ: FRGT), a logistics technology firm specializing in U.S.-Mexico cross-border trade, has announced its intention to invest up to $20 million in the Official Trump Token ($TRUMP
). The company stated the move is aimed at strengthening its digital asset treasury and advocating for favorable trade policies between the United States and Mexico.
The publicly traded company, with a market capitalization of approximately $4.8 million, revealed it has entered into an agreement for a convertible note facility with an institutional investor to fund the TRUMP token acquisition. An initial tranche of $1 million has already been committed for this purpose. This makes Freight Technologies one of the early publicly listed entities to strategically acquire the TRUMP token.
According to Freight Technologies, the investment serves a dual purpose. Firstly, it contributes to the diversification of the company's crypto treasury, building on a previous investment in AI-linked FET tokens, which the company values at around $8 million and links to supporting its logistics platforms.
Secondly, and more notably, Freight Technologies explicitly stated the TRUMP token investment is intended as a means to "advocate for fair, balanced, and free trade between Mexico and the US." Javier Selgas, CEO of Freight Technologies, emphasized the importance of productive commerce between the two countries, highlighting Mexico's position as a leading U.S. trading partner.
The announcement significantly impacted Freight Technologies' stock price, which reportedly surged over 111% following the news before experiencing a notable decline of 21.6% in after-hours trading. This volatility underscores the market's reaction to the unconventional nature of the investment, particularly its stated link to political advocacy.
The strategy of publicly traded companies holding digital assets has gained some traction, popularized by figures like Michael Saylor with Bitcoin and followed by others in the market. However, Freight Technologies' stated objective of using the TRUMP token to influence trade policy introduces a unique dimension and raises questions regarding potential conflicts of interest, especially in light of recent discussions around the TRUMP token and its association with political figures.
The investment in TRUMP tokens by Freight Technologies occurs within a broader context of some companies exploring cryptocurrency holdings as part of their treasury strategies and the increasing intersection of cryptocurrencies with political figures and their associated ventures.