The Houston-based company said in a press release that it is one of the first public companies to make the Trump coin "a cornerstone of its digital asset strategy." The purchase came after Freight Technologies acquired FET tokens from Fetch.ai, a decentralised artificial intelligence platform. As of April 29, the company said it holds about US$8 million worth of FET.
Freight Technologies and other companies are following in the footsteps of Michael Saylor's MicroStrategy, which has turned to the sale of convertible debt and other securities to fund the purchase of Bitcoin worth more than US$50 billion.
Investors have been driving up the shares of companies that scoop up cryptoassets. Upexi Inc. shares have climbed more than 500% since the company announced a plan to raise US$100 million to buy the Solana token, while blank-cheque company Cantor Equity Partners has more than quadrupled on plans to become a Bitcoin-investment vehicle.
See also: Wall Street builds S&P 500 ‘no dividend’ fund in new tax dodge
Such amplified moves are not uncommon in companies with low floats and harken back to the stock swings of the meme-stock era during the pandemic.
The Trump coin, however, is far less established than the cryptocurrencies other firms have targeted - it debuted several days before the president's inauguration and has since lost much of its value.
The president's memecoin has also prompted an uproar among critics over potential conflicts of interest and ethics violations. Democratic Senators Adam Schiff of California and Elizabeth Warren of Massachusetts said last month that a planned private dinner for top holders of the coin may constitute "pay to play" corruption, and are calling for an ethics investigation.
See also: S&P 500 ends quarter at fresh record on trade-talk optimism
Freight Technologies' CEO Javier Selgas said in the release that purchasing the coin was a way to "advocate for fair, balanced and free trade between Mexico and the US".
Chart: Bloomberg
