Freight Technologies (FRGT), a logistics-focused tech company, is making waves with its announcement to purchase up to $20 million in TRUMP tokens, signaling a bold attempt to influence U.S.-Mexico trade relations while enhancing its position in the digital currency market. The company, valued at $4.8 million, has already secured funding through a convertible note agreement with an institutional investor, committing an initial $1 million toward acquiring the tokens.
This strategic move marks a shift in Freight Technologies’ approach to both blockchain assets and cross-border trade. The firm’s CEO, Javier Selgas, emphasized that the purchase is part of a larger plan to diversify the company’s investments and gain a foothold in the political and economic sphere, particularly in the evolving trade dynamics between the U.S. and Mexico.
“By investing in TRUMP tokens, we are not only expanding our digital asset portfolio but also positioning ourselves to actively influence the trade discussions that directly impact our business,” Selgas said. “As the U.S. and Mexico are key trading partners, securing a stake in TRUMP tokens could give us a voice in future trade negotiations.”
In addition to the TRUMP token investment, Freight Technologies also holds significant positions in FET tokens, which power the company’s AI-driven logistics systems. This aligns with Freight’s ongoing effort to leverage technology to improve the efficiency of cross-border trade.
Despite the token’s controversial ties to former U.S. President Donald Trump, Freight Technologies sees it as a way to navigate the geopolitical landscape and assert influence over trade policies that are crucial to its business. The TRUMP token has gained attention recently, with some Democratic lawmakers expressing concern over potential conflicts of interest, particularly regarding the token’s possible impact on trade policy.
Freight’s decision to dive into the world of digital assets comes at a time when the company is grappling with a decline in stock value. The firm has seen its shares drop nearly 90% over the past year, primarily due to difficulties in the cross-border logistics market. However, the firm hopes that the TRUMP token investment, alongside its existing holdings in FET tokens, will offer the stability and growth potential needed to turn things around.
Freight’s announcement had an immediate impact on its stock price, which surged 111% upon the news. However, it faced a 21.6% decline in after-hours trading, underscoring the volatility inherent in both the stock and cryptocurrency markets.
Freight Technologies continues to focus on strengthening its position in the U.S.-Mexico trade sector, recently making investments in Adecoagro, a prominent agribusiness in Latin America. The company is also working on launching its own stablecoin to streamline cross-border transactions, further diversifying its holdings and strategic initiatives.
