Freight Technologies (FRGT), a U.S.-listed logistics tech firm with a $4.8 million market cap, has announced plans to buy up to $20 million worth of the Official Trump Token (TRUMP). The company focuses on cross-border trade between the United States and Mexico and says this move is part of a strategy to build out its cryptocurrency holdings.
According to a press release, the funding will come through a convertible note facility with an institutional investor. The first $1 million tranche has already been committed. Freight said the funds will be used only to acquire TRUMP tokens, making it one of the first publicly traded firms to do so.
CEO Javier Selgas stated, “We believe that the addition of the Official Trump tokens is an excellent way to diversify our crypto treasury, and also an effective way to advocate for fair, balanced, and free trade between Mexico and the US.” Meanwhile, the company’s announcement caused its shares to jump over 111% before the market closed on Friday. However, in after-hours trading, the FRGT stock dropped by 21.6%.
Meanwhile, this is not Freight’s first foray into crypto. The company previously invested $8 million in FET, a token tied to artificial intelligence tools it uses in its logistics systems. The company appears to be following in the footsteps of other public firms investing in digital assets, such as MicroStrategy, Semler Scientific, and Japan-based Metaplanet, which now holds over 5,000 BTC.
TRUMP tokens are currently trading at $11.53, down 10% in the last 24 hours, according to CoinMarketCap.
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