US Nasdaq-listed logistics company Freight Technologies (Fr8Tech) announced that it will secure up to $20 million in convertible bond financing to establish a crypto asset treasury, specifically for purchasing the Trump meme coin TRUMP, as part of a dual strategy to support fair trade between the US and Mexico and strengthen corporate crypto asset allocation.
Logistics company invests in TRUMP meme coin as financial reserve?
US Nasdaq-listed logistics solutions company Fr8Tech (stock code: FRGT) announced that it has reached an agreement with an unnamed institutional investor to raise up to $20 million through convertible notes.
Fr8Tech CEO Javier Selgas stated that the funds will be 'earmarked' and entirely invested in purchasing the official Trump meme coin TRUMP:
We believe that including the Trump meme coin can not only effectively diversify our crypto asset reserves but also serve as one of the means to advocate for fair, balanced, and free trade between the US and Mexico.
The statement indicated that Fr8Tech plans to issue the first tranche of notes worth $1 million, with the potential to raise an additional $19 million later. This makes Fr8Tech the first publicly listed company to make TRUMP the core of its digital asset strategy.
Shareholders not buying in? FRGT stock price plummeted 20% within the day.
After the news release, the company's stock price briefly rose on Wednesday but quickly fell back. As of Thursday's close, the stock price plummeted 20.6% within the day, closing at $0.98, in stark contrast to the general upward trend in the US stock market.
It can be seen that in the eyes of shareholders, political meme coins cannot translate into substantial revenue growth, and the company's attempt to hype the meme coin has instead eroded shareholder trust in the company.
Next step after trading with Fetch.ai
Recently, Fr8Tech acquired the native token FET of the artificial intelligence blockchain platform Fetch.ai for $5.2 million, using over 2.3 million shares of preferred stock as a condition for exchange, demonstrating the company's active expansion of its crypto investment portfolio.
Selgas further cited Trump and US Treasury Secretary Scott Bessent's 'America First' statement, emphasizing the US's commitment to deepening partnerships with trading partners:
One of Fr8Tech's core missions is to promote productive and proactive trade between the US and Mexico.
Are crypto reserve companies a new trend?
As the Trump administration pushes for the establishment of a national Bitcoin reserve, more and more companies are choosing to incorporate crypto assets into their corporate reserves.
Including Bitcoin frontrunner Strategy, Japanese MicroStrategy Metaplanet, and the collaboration of the son of the US Secretary of Commerce with SoftBank and Tether to create Twenty One Capital.
Similar financing buyback strategies are also being replicated in the crypto space, with DeFi Development Corporation and SOL Strategies recently undergoing brand rebranding, focusing on investment in the Solana ecosystem.
(MicroStrategy in the Solana space, raising a billion dollars to buy SOL, JNVR has surged ninefold)
However, whether Fr8Tech's move will be effective depends on whether the market buys in. After all, the slogan 'Make America Great Again' may only make Trump great again, and not necessarily make Fr8Tech great.
This article: Make Trump great again? US logistics company Fr8Tech invests tens of millions of dollars to launch Trump coin investment plan, first appeared in Chain News ABMedia.
