Nasdaq-Listed Safety Shot Plunges 50% After $25M BONK Memecoin Treasury Move Shares in Nasdaq-listed wellness drinks maker Safety Shot tanked 50% following the company's announcement to allocate $25 million to the BONK memecoin as part of a new treasury strategy. The firm revealed a strategic alliance with BONK's founding contributors to deeply integrate Safety Shot with the memecoin ecosystem. The decision to focus on BONK as the core treasury asset was justified by the company citing BONK's "clear and distinct advantages over its competitors." BONK, a Solana-based token, benefits from superior technology enabling high-speed, low-cost transactions. Safety Shot highlighted that this gives BONK an edge over rivals like Shiba Inu and Pepe, which suffer from Ethereum's high fees and slower speeds, and Dogecoin, which is inflationary. Currently, BONK ranks as the fifth-largest memecoin by market capitalization, valued at approximately $1.9 billion with 77 trillion tokens in circulation. Despite peaking in November 2024, BONK prices have since dropped 57% amid the fading memecoin craze over the past six months. Safety Shot prepared for this pivot by settling all outstanding debt and maintaining over $15 million in cash reserves. The company also plans to issue preferred shares valued at $35 million, convertible into common stock. CEO Jarrett Boon stated, "By aligning with one of the most exciting ecosystems in digital assets, we are taking a bold first step in a much broader corporate evolution for our company." Cointelegraph reached out to Safety Shot for further comments but did not receive an immediate response.

Safety Shot Stock Slumps

Investors reacted negatively to the announcement, with Safety Shot's stock (SHOT) plummeting more than 50% on Monday, closing at $0.59 in after-hours trading. Formerly known as Jupiter Wellness, Safety Shot manufactures the blood alcohol detox drink Sure Shot. Jarrett Boon, the current CEO, was also co-founder and CEO of GBB Drink Lab, the company behind Safety Shot. Despite a 36% surge in shares over the past month, the stock remains down 22.5% year-to-date.

Safety Shot shares slump following the announcement. Source: Google Finance

Not the First Corporate Memecoin Treasury

Safety Shot is not the first public company to adopt a memecoin treasury strategy. In May, GD Culture Group, specializing in livestreaming and e-commerce, announced plans to raise up to $300 million for a crypto treasury reserve including the US President’s namesake memecoin TRUMP. Memecoin market capitalization has declined by 25% since the start of the year, while the overall crypto market cap increased by 22% in the same period, according to CoinMarketCap.

Originally published at Cointelegraph on Tue, 12 Aug 2025 04:12:23 GMT

Frequently Asked Questions (FAQ)

Safety Shot's Treasury Strategy

Q: Why did Safety Shot decide to allocate $25 million to BONK memecoin? A: Safety Shot announced a new treasury strategy that involves allocating $25 million to BONK memecoin. The company cited BONK's "clear and distinct advantages over its competitors," including its Solana-based technology for high-speed, low-cost transactions, positioning it favorably against tokens on slower, more expensive networks like Ethereum, and also against inflationary tokens like Dogecoin. Q: What are the perceived advantages of BONK over other memecoins, according to Safety Shot? A: Safety Shot highlighted BONK's superior technology for high-speed, low-cost transactions. They specifically contrasted this with Shiba Inu and Pepe, which are affected by Ethereum's high fees and slower speeds, and Dogecoin, which they noted as being inflationary. Q: How has BONK performed recently? A: BONK ranks as the fifth-largest memecoin by market capitalization. While it experienced a peak in November 2024, its price has dropped 57% in the past six months, reflecting a broader cooling of the memecoin craze. Q: What is Safety Shot's current financial position? A: Safety Shot has settled all outstanding debt and maintains over $15 million in cash reserves. They also plan to issue $35 million in preferred shares, which are convertible into common stock. Q: Is Safety Shot the first company to adopt a memecoin treasury strategy? A: No, Safety Shot is not the first. GD Culture Group, for example, announced plans to raise up to $300 million for a crypto treasury that included the TRUMP memecoin.

Crypto Market AI's Take

The decision by Safety Shot to allocate a significant portion of its treasury to a memecoin like BONK represents a bold, albeit high-risk, move in corporate treasury management. While BONK's technological advantages on the Solana network are noted, memecoins are inherently volatile assets driven by speculative sentiment rather than fundamental value. This strategy could be seen as an attempt to capitalize on emerging trends in digital assets and potentially gain exposure to the rapidly evolving crypto ecosystem. However, the substantial plunge in Safety Shot's stock indicates that investors are skeptical of this diversification strategy. For companies considering similar moves, a thorough understanding of the risks associated with memecoin volatility, coupled with robust risk management protocols, is crucial. Our AI-powered market analysis tools are designed to help navigate these volatile waters by providing data-driven insights into asset performance and market sentiment.

Nasdaq-listed firm slumps 50% on BONK memecoin treasury play

Safety Shot Stock Slumps

Not the First Corporate Memecoin Treasury

Frequently Asked Questions (FAQ)

Safety Shot's Treasury Strategy

Crypto Market AI's Take

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