Freight Technologies Inc. FRGT has become the first public company to adopt the Official Trump TRUMP/USD meme coin as a treasury reserve asset, as announced on Wednesday.
What Happened: The logistics management firm agreed to the issuance of convertible notes up to $20 million with an institutional investor, according to a press release. The proceeds from this financing will be “exclusively” allocated for purchasing TRUMP tokens.
Freight Technologies plans to issue notes amounting to $1 million in the first tranche, with an additional capacity of up to $19 million available in subsequent drawdowns.
“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 U.S.,” said CEO Javier Selgas.
Why It Matters: The decision comes against the backdrop of President Donald Trump’s new trade policy, as part of which he imposed a 25% tariff on all imports from Mexico and Canada that are not covered under the region’s U.S.-Mexico-Canada trade pact.
Freight Technologies is particularly known for cross-border shipping between the U.S. and Mexico.
Meanwhile, TRUMP has been in the news after the top holders of the coin were invited to an exclusive dinner with Trump. The news sparked a buying frenzy but also attracted criticism, with one Democratic lawmaker labeling it an impeachable offense
Price Action: At the time of writing, TRUMP was exchanging hands at $12.50, down 4.73% in the last 24 hours, according to data from Benzinga Pro. The meme coin, launched before Trump’s presidential inauguration, was down 83% from its all-time highs.
Shares of Freight Technologies were down 3.53% in after-hours trading, after plunging 20% to $0.9848 on Thursday.
As of this writing, the stock was ranked lower in terms of momentum, a measure of an asset’s relative strength based on price movement patterns and volatility across several timeframes. To find high-momentum stocks, visit Benzinga Edge Stock Rankings.
Photo Courtesy: Kirill Aleksandrovich On Shutterstock.com
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
