- Safety Shot announced a $25 million BONK memecoin allocation into its treasury, prompting its Nasdaq-listed shares to fall sharply.
- The company said it had cleared all debt, held over $15 million in cash, and planned a $35 million preferred share issuance to support its strategic shift.
Safety Shot, a NASDAQ-listed beverage company trading under ticker SHOT, saw its stock fall over 50 % immediately after revealing a treasury strategy centered on the BONK memecoin. The firm stated it had secured approximately $25 million in BONK tokens and positioned them as a core treasury asset.
Company Unveils BONK Allocation and Strategic Rationale
The company described BONK as offering “clear and distinct advantages,” citing faster processing speeds and lower costs compared with alternative memecoins such as Shiba Inu and Pepe. Safety Shot noted that it had fully settled its outstanding debt and retained more than $15 million in cash before executing the strategy. It also disclosed plans to issue preferred shares valued at $35 million convertible into common stock to support the shift.
Market Reaction Highlights Investor Caution
Investors responded with pronounced skepticism, sending SHOT stock down to around $0.59 in after-hours trading. The steep decline underscores concerns over exposure to speculative digital assets and whether the rationale for tying a public company’s treasury to a volatile memecoin was clearly communicated. The memecoin market itself has been under pressure this year, with BONK down approximately 57 % from its November 2024 peak and currently ranking among the top five memecoins by market capitalization.
The episode raises questions about corporate governance and treasury prudence as more firms explore unconventional strategies in crypto. Transparency and clear strategic justification will be critical in maintaining investor confidence amid such moves.
