Cross-border logistics firm buys the TRUMP meme coin to avoid tariffs

Freight Technologies (Nasdaq: FRGT) has announced a $20 million stock offering to buy TRUMP meme coins, citing growing concerns over U.S.-Mexico tariffs as the core motivation.

Cross-border logistics firm Freight Technologies Inc. (Nasdaq: FRGT) has announced a $20 million stock offering to purchase TRUMP meme coins, citing growing concerns over U.S.-Mexico tariffs as the core motivation.

The company plans to use the proceeds from the convertible notes to acquire Official Trump Tokens ($TRUMP) as part of its digital asset strategy.

According to a press release, Freight Technologies will be offering up to $20 million of convertible notes to an institutional investor. The notes will accrue interest at a rate of 8.25% per annum and can be converted into newly issued shares of Freight’s common stock at a price of $21.00 per share.

The company’s decision follows a similar move by MicroStrategy, which converted its cash reserves into Bitcoin. However, unlike MicroStrategy’s institutional-grade embrace of crypto, Freight’s bet is a volatile, politically charged meme coin linked to former President Donald Trump.

The coin, which dropped nearly 88% from its January peak, is known for its rapid price swings and speculative nature.

While the purchase is less about speculation or politics and more about strategic advocacy, according to Freight Technologies, the company’s involvement in the meme coin is a risky and unconventional move.

With its operations deeply tied to U.S.-Mexico trade, Freight sees potential tariffs as an existential threat. Rather than seeking direct political favors or exemptions, the company is opting for a high-profile, high-risk symbolic investment.

“At the heart of our mission is the promotion of productive and active commerce between the United States and Mexico,” said CEO Javier Selgas. “We believe that adding Official TRUMP tokens is an effective way to advocate for fair, balanced, and free trade between Mexico and the U.S.”

Freight’s involvement in the meme coin also reflects its commitment to leveraging emerging technologies for good. The company currently employs AI-driven tools to optimize freight flows across the southern border and believes political instability could drastically hamper its logistics efficiency.

However, some industry observers are skeptical of the move, noting that the TRUMP meme coin has faced criticism since its launch.

Watchdogs have expressed concerns over the potential for misuse of the token and the lack of transparency in its ownership structure. According to the Wall Street Journal, CIC Digital LLC (linked to The Trump Organization) and Fight Fight Fight LLC control a staggering 80% of the TRUMP meme coin supply.

This concentration of ownership could create opportunities for market manipulation and abuse, especially given the token’s history of extreme volatility.

The massive involvement of Trump Organization entities in the meme coin has been a subject of ongoing interest and speculation.

Those who acquired the token early on, such as the Trump Organization subsidiary and Fight Fight Fight, stand to reap significant gains if the token’s price rises.

The report also notes that the token’s founders, who initially launched it in December 2022, sold their remaining holdings of the coin in March.

Moreover, the report highlights the involvement of a third entity, a newly formed company called World Liberty Financial, which is being led by Trump’s son, Eric Trump, and aims to create a crypto platform focused on financial literacy and entrepreneurship.

The article underscores the unique political and economic dimensions of the TRUMP meme coin, which has become a point of convergence for diverse interests in the realms of cryptocurrency, politics, and business.

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