Nasdaq-listed Fr8Tech to create $20 million TRUMP treasury to support fair US-Mexico trade

Freight Technologies (Fr8Tech), a Nasdaq-listed logistics solutions company, is creating a $20 million corporate treasury dedicated to purchasing Official Trump (TRUMP) memecoins.

According to its statement released Wednesday, the company secured an agreement with an unnamed institutional investor to issue up to $20 million in convertible notes through a facility. Capital from financing is "exclusively earmarked" for purchasing TRUMP tokens, the statement said.

"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.,” Fr8Tech CEO Javier Selgas said.

Earlier this month, the company announced its $5.2 million acquisition of FET, the native cryptocurrency for Fetch.ai, in exchange for over 2.3 million preferred shares of the company. 

“At the heart of Fr8Tech’s mission is the promotion of productive and active commerce between the United States and Mexico," Selgas added, citing U.S. Treasury Secretary Scott Bessent's comment that the country aims to foster deeper collaboration with trade partners despite the slogan "America First."

Fr8Tech said it plans to issue an aggregate amount of $1 million worth of notes in its first tranche, with up to an additional $19 million available in subsequent drawdowns.

The company's stock price briefly surged on Wednesday after the announcement, but has since fallen back to pre-announcement levels. According to Google Finance data, its stock closed down 20.6% at $0.98 on Thursday, while The Nasdaq Composite rose 1.52%.

Meanwhile, the official Trump memecoin project recently freed up an additional 40 million tokens to the open market, which is 4% of its total supply. The memecoin is currently changing hands at $12.37, down 4.8% in the past 24 hours, according to The Block's TRUMP price page.

More crypto treasuries

Following President Donald Trump's election and his administration's push for national bitcoin and crypto reserves, many companies accelerated the accumulation of cryptocurrencies in corporate treasuries.

Major bitcoin holders Strategy and Metaplanet have continued to amass bitcoin despite macro-driven pressure on the crypto market, while DeFi Development Corporation and SOL Strategies recently rebranded to sharpen their focus on investment in Solana.

Traditional finance giants Cantor Fitzgerald and SoftBank also created a new crypto venture with Tether earlier this month to follow a Strategy-like focus on building up bitcoin holdings. The venture, named Twenty One Capital, is expected to launch with $3.6 billion worth of bitcoin in its treasury.