Shares of Nasdaq-listed beverage company Safety Shot plunged 50% after it revealed plans to purchase $25 million worth of Bonk memecoin as part of a new treasury strategy.
On Monday, the company announced a strategic alliance with Bonk’s founding contributors, aiming to fully integrate itself into the memecoin’s ecosystem.
Safety Shot said it will make Bonk its core treasury asset, citing the token’s “clear and distinct advantages over competitors.”
The Solana-based coin “offers high-speed, low-cost transactions,”, thanks to its network, giving it an edge over rivals like Shiba Inu (SHIB) and Pepe (PEPE), which run on Ethereum and face high fees and slower speeds, and Dogecoin (DOGE), which is inflationary.
Bonk is currently the fifth-largest memecoin by market value, with a $1.9 billion market cap and 77 trillion tokens in circulation. Its price peaked in November 2024 but has dropped 57% in the past six months as the memecoin hype cooled.
The company said it had cleared all outstanding debt and retained over $15 million in cash before making this move. It also plans to issue $35 million in preferred shares, convertible into common stock.
“This is a bold first step in a much broader corporate evolution. One of the most exciting ecosystems in digital assets.”
CEO Jarrett Boon
Bonk Bet Sends Safety Shot Stock Tumbling Over 50%
The move failed to win over investors, with Safety Shot’s stock (SHOT) plunging more than 50% on Monday to $0.59 in after-hours trading.
Safety Shot, formerly known as Jupiter Wellness, produces detox drink. CEO Jarrett Boon previously co-founded and led GBB Drink Lab, the company that created Safety Shot.
While the stock had gained 36% over the past month, it remains down 22.5% since the start of the year.
Safety Shot is not the first publicly traded company to embrace a memecoin treasury strategy. In May, GD Culture Group, a livestreaming and e-commerce firm, unveiled plans to raise up to $300 million for a crypto treasury reserve, which would include the US president-themed memecoin TRUMP (TRUMP), currently priced at $8.77.
