Overview
Freight Technologies plans to invest as much as $20 million in the Official Trump Token (TRUMP) to expand its cryptocurrency treasury.
- Following this announcement, Freight Technologies shares saw a rise of over 111%, although they later experienced a 21.6% drop in after-hours trading.
Details
Freight Technologies, a logistics technology company valued at $4.8 million, is set to procure up to $20 million in TRUMP tokens in an effort to build a crypto treasury. The funding was secured through a convertible note facility, with a $1 million tranche initially committed. This acquisition positions the company as one of the first publicly listed firms to engage heavily in such token purchases.
The firm had previously invested in FET tokens, valued at $8 million, supporting AI tools utilized in its logistics operations. Federal regulations permit public companies to invest in digital assets, a trend fostered by broader market participants like Michael Saylor.
Japan, too, is witnessing a rise in corporate investments in cryptocurrencies, with companies accumulating significant Bitcoin holdings to strengthen balance sheets.
Freight Technologies aims not only to bolster its capital but also to influence trade agreements between the U.S. and Mexico amid ongoing tensions and tariff disputes. CEO Javier Selgas expressed confidence in using the Official Trump Token to advocate for fair trade practices.
However, this strategy raises ethical questions, especially with potential conflicts of interest concerning political figures and their associations with cryptocurrency ventures. Recently, media outlets noted attention on Trump’s involvement with token purchases, which sparked concerns among Democratic lawmakers.
Freight Technologies is keen on maintaining its stock performance, especially considering a nearly 90% decline in the past year. The company’s objective revolves around enhancing trading flows between the U.S. and Mexico, which is vital for both economies’ health.
