Freight Technologies Inc. (Nasdaq: FRGT), a logistics management company focused on cross-border navigation between the United States and Mexico, announced on April 30, 2025, that it became the first company listed on the stock market to adopt the Official trump (Crypto: Trump) even as a Treasury reserve asset. The company obtained an agreement up to up to $ 20 million in convertible tickets with an institutional investor, the product being exclusively allocated to the purchase of Trump tokens.
The initial tranche implies $ 1 million, with up to $ 19 million available during subsequent withdrawals, subject to certain conditions. CEO Javier Selgas said that this decision diversifies the company’s cryptographic treasure, which already includes Fetch.ai (FET) tokens, worth around 8 million dollars on April 29, 2025. Selgas also supervised investment as a means of advocating potential, balanced, balanced and free trade rates that could undress operations.
Freight Technologies emphasizes his role in the facilitation of trade, noting the position of Mexico as a trading partner of goods in the United States. However, the announcement sparked a significant market reaction. Freight Technologies’ shares plunged 20% on May 1, 2025, ending at $ 0.9,9848, with an additional 3.53% drop after work hours. The Trump Memecoin himself was negotiated at $ 12.50 on May 2, 2025, down 4.73% in the last 24 hours and 83% of its summit of all time, reflecting its volatility.
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Critics, including certain analysts, speculate that investment can be an attempt to influence American policy on prices rather than a purely financial decision, although the company’s press release does not explicitly require tariff exemptions. Trump Memecoin was faced with broader controversy, ethics experts and democratic legislators raising concerns about Conflicts of interest related to the involvement of President Trump, including allegations of initiate negotiation and potential “pumping and discharge” regimes.
A Reuters The report noted that the entities behind the medal gained nearly $ 100 million in negotiation costs, while many small traders have undergone losses. This movement reflects strategies such as microstrategy Bitcoin treasure, but is more risky due to the speculative nature of the same and the lack of intrinsic value. The long -term viability of freight technologies investments remains uncertain, is based on regulatory developments and market dynamics.
The decision by Freight Technologies Inc. To establish a strategic reserve of Trump Memecoin, several implications through the financial, operational and geopolitical dimensions. The Trump Memecoin is very volatile, with a drop of 83% compared to its summit of all time and a drop of 4.73% in the last 24 hours to May 2, 2025. This exhibits freight technologies at a significant financial risk, in particular compared to more established cryptocurrencies like Bitcoin or Ethereum. Another decline could erode the value of the company’s treasure.
The 20% shares plunge on May 1, 2025 and additional losses after opening hours report the skepticism of investors. This could increase the cost of the company’s capital and limit access to future financing. The 20 million dollars in convertible tickets linked to Trump purchases have debt bonds. If the same underperform, the service of this debt could reduce cash flows, in particular for a company with a market capitalization of less than $ 20 million.
The focus made by Freight Technologies on logistics and cross -border navigation can be overshadowed by this speculative cryptography company. Investors and analysts on X criticized this decision as a pivot of operational priorities, potentially undermining confidence in management. While the company supervises the same reserve as diversifying its 8 million dollars Fetch.ai (FET), the speculative nature of the two assets concentrates the risk on the volatile cryptographic markets rather than traditional package assets such as obligations or species.
CEO Javier Selgas linked the investment to advocacy for “balanced, balanced and free trade” in the midst of fears of American prices. This suggests a strategic attempt to align with or influence American policy as part of the Trump administration. However, there is no guarantee that this will reduce tariff risks, which could disrupt the core business of Freight Technologies taking into account the role of Mexico as an American trading partner.
Trump’s ties to President Trump made a meticulous examination for potential conflicts of interest and initiate negotiation allegations. The association with a controversial asset could invite regulatory attention or reputation damage, in particular if legislators or ethics groups intensify surveys. Freight Technologies follows companies like Microstrategy, which has strengthened its valuation via Bitcoin Reserve.
However, a memecoin reserve is unprecedented for a listed company on the stock market and can inspire similar speculative movements by others, which has potentially destabilizing small businesses. Negative reactions on X and the decline in shares suggest distrust of the wider market for same investments by traditional companies. This could limit the capacity of freight technologies to attract institutional investors who prioritize stability.
Trump’s structure, with high negotiation costs and market handling allegations, could draw the attention of the dry. If it is classified as security or linked to fraudulent activities, Freight Technologies’ investment could face judicial disputes. As a business operating in American-mexic trade, any regulatory falling could complicate its international operations, especially if the Mexican authorities see the movement skeptically.
The same often rely on the overhaul of media rather than the fundamentals. A collapse of Trump’s value could eliminate the value of the reserve, damage the financial situation and the credibility of freight technologies. The company’s ability to return to an operational orientation or to liquidate its cryptographic assets without significant losses will be critical. The convertible notes sampling structure offers flexibility but also links future funding to the same performance.
While Freight Technologies aims to diversify its treasure and possibly influence commercial policy, this decision introduces substantial financial, regulatory and reputation risks. The success of the strategy depends on the performance of Trump Memecoin, the evolution of American trade policies and the capacity of the company to manage skepticism of investors and the market.
