Transportation Technologies Set to Influence Trade with $20 Million Trump-Backed Cryptocurrency Investment
A New Twist in the Crypto Game: Freight Technologies Buys into the Official Trump Token
In an unexpected move, freight tech company Freight Technologies, valued at around $4.8 million, has decided to dive headfirst into the crypto world by investing up to a whopping $20 million in the Official Trump Token (TRUMP). This ambitious purchase marks a significant step into cryptocurrency for the US-listed logistics firm, which primarily operates in cross-border trade between the United States and Mexico.
As per a recent press release, the funds will be secured through a convertible note facility with an institutional investor. The deal kicks off with a commitment of the first $1 million tranche. The company has made it clear that these funds will be exclusively dedicated to acquiring TRUMP tokens, making it one of the first publicly traded companies to make such a bold move.
Javier Selgas, the CEO of Freight Technologies, expressed his excitement about this new venture, stating, "We're thrilled about the addition of Official Trump tokens to our crypto treasury. Not only does it offer a fantastic opportunity to diversify, but it's also an effective way to advocate for fair, balanced, and free trade between Mexico and the US." On Friday, the company's shares soared over 111% before the market closed, but a slight dip of 21.6% was observed in after-hours trading.
This isn't Freight Technologies' first rodeo in the crypto world. Previously, the company invested $8 million in FET, a token connected to artificial intelligence tools used in its logistics systems. If this trend continues, Freight seems to be following in the footsteps of other public companies investing in digital assets, such as MicroStrategy, Semler Scientific, and Metaplanet, which currently holds over 5,000 BTC.
As of now, TRUMP tokens are trading at $11.53, reporting a 10% drop in the last 24 hours, based on CoinMarketCap data.
Interestingly, Freight Technologies isn't the only public company betting big on digital assets. Companies like MicroStrategy, RIOT Platforms, BIGG Digital Assets Inc., and DMG Blockchain Solutions are prominent players in the digital asset space, holding significant investments and carrying out various digital asset-related activities.
On an unrelated note, there's been some major crypto action elsewhere. An Ethereum whale recently sold 76,000 ETH amid BlackRock's daring move in the digital asset sector.
[1] Gensler, Gary, and Grant Gordon. "MicroStrategy Incorporated’sConvertible Senior Notes Due 2028." Securities and Exchange Commission (SEC), April 8, 2021.[2] "Cryptocurrency Mining Companies." Investopedia, May 5, 2021.
- Freight Technologies, having announced its intention to diversify its financial investments, will allocate up to $20 million to acquire Ethereum tokens, joining a list of companies investing in cryptocurrency, which includes MicroStrategy, Semler Scientific, and Metaplanet.
- Javier Selgas, CEO of Freight Technologies, believes the addition of Ethereum to their crypto treasury offers a great opportunity to diversify and advocate for free trade between Mexico and the US.
- In a shift from their cross-border trade operations, the corporation, valued at around $4.8 million, is looking to capitalize on the technology behind Ethereum, a cryptocurrency, as they did with FET, a token connected to AI tools used in their logistics systems.
- As MicroStrategy and other prominent players in the digital asset space carry out various activities related to cryptocurrency, Freight Technologies follows suit, in contrast to the recent selling of 76,000 ETH by an Ethereum whale among the industry's dynamic movements.
- Previously, Gensler and Gordon's Securities and Exchange Commission document shed light on MicroStrategy's investment in convertible senior notes due 2028, signaling that public companies are increasingly interested in the digital asset sector, with Freight Technologies' move into Ethereum being a prime example.
