TL;DR
- Safety Shot, a Nasdaq-listed wellness drinks company, announced a $25 million investment in the Solana-based memecoin Bonk as its core treasury asset.
- The company highlights Bonk’s technological advantages over Ethereum and Dogecoin-based rivals.
- Despite the strategic move, Safety Shot’s stock fell 50%, reflecting investor skepticism amid a cooling memecoin market.
Nasdaq-listed Safety Shot recently made headlines by allocating $25 million of its treasury to Bonk, a memecoin built on the Solana blockchain. The company believes that Bonk’s high-speed and low-cost transaction capabilities give it a significant edge over popular memecoins like Shiba Inu and Dogecoin, which face issues with network fees and slower processing times. Bonk ranks as the fifth-largest memecoin by market capitalization, currently valued at $1.9 billion, though its price has dropped 57% from last November’s peak.
This strategic move forms part of a broader corporate evolution for Safety Shot, a company known for its blood alcohol detox drink Sure Shot. CEO Jarrett Boon explained that by partnering closely with Bonk’s founding team, Safety Shot aims to position itself within one of the most dynamic ecosystems in digital assets. The company has prepared for this investment by clearing its debts and maintaining a strong cash position of over $15 million. It also plans to raise an additional $35 million through preferred shares convertible into common stock, signaling confidence in this new direction.
Investor Reaction and the Memecoin Treasury Trend
Despite Safety Shot’s enthusiasm, the market’s reaction was less favorable. Shares dropped sharply by more than 50% during after-hours trading, falling to $0.59. This decline contrasts with a modest 36% gain the stock had experienced in the previous month but leaves the year-to-date performance negative by 22.5%. Investor hesitation likely reflects broader concerns over the volatile and cooling memecoin market, which has seen a 25% decrease in market capitalization since early 2025.
Safety Shot is not alone in exploring memecoin treasuries. Earlier this year, GD Culture Group announced plans to raise $300 million for a crypto treasury, including investments in the TRUMP memecoin. As the overall cryptocurrency market grows steadily, up 22% this year, memecoins remain more unpredictable but continue to attract innovative companies willing to integrate new digital asset strategies into their business models.
Industry experts suggest that this move by Safety Shot could pave the way for more traditional companies to adopt blockchain-based assets as part of their long-term financial strategy and innovation.
