Freight Technologies Invests $20M in Trump Token to Influence Trade Policy

Freight Technologies, a logistics tech firm with a market capitalization of $4.8 million, has entered into an agreement to purchase up to $20 million in the Official Trump Token (TRUMP) to expand its crypto treasury. The company, which focuses on cross-border trade between the U.S. and Mexico, secured the funding through a convertible note facility with an institutional investor, with an initial $1 million tranche already committed. This capital will be exclusively used to acquire TRUMP tokens, making Freight Technologies one of the first publicly listed companies to do so.

The decision to invest in TRUMP tokens follows a previous investment in AI-linked FET tokens, valued at $8 million, which supports AI tools used across Freight Technologies' logistics platforms. The strategy of buying digital assets for publicly traded companies is not new. Michael Saylor championed this approach with a bitcoin strategy, and other companies such as Semler Scientific and Cantor have followed suit. The trend is also gaining traction in Japan, where several firms are accumulating cryptocurrencies.

However, Freight Technologies' mandate is unique: to influence the U.S.-Mexico trade deal amid President Trump's trade policies. Javier Selgas, the company's CEO, stated that the addition of Official Trump tokens is an excellent way to diversify their crypto treasury and advocate for fair, balanced, and free trade between Mexico and the U.S. While this strategy could benefit Freight Technologies, it raises questions about potential conflicts of interest. Recently, President Trump's involvement with the token has drawn criticism from Democratic lawmakers, who cited it as potential grounds for impeachment.

For Freight Technologies, which has seen its stock price plummet nearly 90% in the last 12 months and is heavily reliant on cross-border trading, this move could be a strategic effort to stabilize share prices. The company's product lineup includes applications for cross-border freight booking and transportation management, aimed at modernizing the flow of goods in North America. Other companies have also made investments in the crypto space linked to the U.S. President, such as DWF Labs, which invested $25 million in the decentralized finance protocol backed by Trump and his family, World Liberty Financial (WLFI).

The investment in TRUMP tokens by Freight Technologies is a bold move that could have significant implications for the company and the broader crypto market. While the strategy aims to influence trade policies and diversify the company's crypto holdings, it also raises ethical and legal questions about the role of memecoins in political influence. As the crypto market continues to evolve, it will be interesting to see how other companies navigate these complex issues and the potential impact on their operations and shareholder value.