Nasdaq-listed logistics company Freight Technologies (Fr8Tech) announces that it will obtain up to $20 million in convertible debt financing to establish a crypto asset treasury specifically for purchasing the Trump meme coin TRUMP, as a dual strategy to support fair trade between the US and Mexico and strengthen corporate crypto asset allocation.
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ToggleLogistics Company Investing in TRUMP Meme Coin as Financial Reserve?
Nasdaq-listed logistics solutions company Fr8Tech (stock code: FRGT) announces 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 "specifically used" to purchase the official Trump meme coin TRUMP:
"We believe that incorporating the Trump meme coin will not only effectively diversify our crypto asset reserves but also serve as a means to advocate for fair, balanced, and free trade between the United States and Mexico."
The statement indicates that Fr8Tech plans to first issue $1 million in initial notes, with the potential to raise up to an additional $19 million. This will make Fr8Tech the first listed company to make TRUMP a core part of its digital asset strategy.
Shareholders Not Buying In? FRGT Stock Plummets 20% Intraday
After the news was released, the company's stock briefly rose on Wednesday but quickly fell. By Thursday's close, the stock had plummeted 20.6%, closing at $0.98, in stark contrast to the generally rising US stock market.
It appears that in shareholders' eyes, the political meme coin cannot translate into substantial revenue growth, and the company's attempt to hype the meme coin has instead eroded shareholders' trust.
After Transaction with Fetch.ai, What's Next?
Just recently, Fr8Tech acquired the native token FET from the AI blockchain platform Fetch.ai for $5.2 million, exchanging over 2.3 million preferred shares, indicating 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 United States' commitment to deepening cooperation with trade partners:
"One of Fr8Tech's core missions is to promote productive and proactive trade between the US and Mexico."
Crypto Reserve Enterprises Becoming a New Trend?
With the regulatory direction shifted by the Trump administration's push to establish a national Bit reserve, more and more companies are choosing to incorporate crypto assets into their corporate reserves.
These include Bit flywheel leader Strategy, Japanese MicroStrategy Metaplanet, and Twenty One Capital, which is jointly operated by the US Commerce Secretary's son, SoftBank, and Tether.
Similar financing and repurchase strategies are being replicated in the crypto field, with DeFi Development Corporation and SOL Strategies recently rebranding to focus on Solana ecosystem investments.
(Solana's MicroStrategy, Raising $1 Billion to Buy SOL, JNVR Has Jumped Nine-Fold)
However, whether Fr8Tech's move will be successful remains to be seen, depending on market reception. After all, the "Make America Great Again" slogan might only make Trump great again, not Fr8Tech.
Risk Warning
Cryptocurrency investments carry high risks, and prices may fluctuate dramatically. You may lose all your principal. Please carefully assess the risks.
