Shares of Nasdaq-listed beverage maker Safety Shot (SHOT) tumbled more than 50% on Monday after the company unveiled plans to allocate $25 million to Bonk (BONK), a Solana-based memecoin, as the centerpiece of its new corporate treasury strategy.
In a statement, Safety Shot announced a strategic alliance with Bonk’s founding contributors, pledging to integrate more deeply into the token’s ecosystem. The firm said it selected Bonk over other popular memecoins due to its “clear advantages,” citing its high-speed, low-cost transactions compared with the slower, higher-fee networks used by Shiba Inu (SHIB) and Pepe (PEPE). It also noted that Dogecoin’s (DOGE) inflationary model puts it at a disadvantage.
Bonk, the fifth-largest memecoin by market value at $1.9 billion, has 77 trillion tokens in circulation. Despite peaking in November 2024, its price has fallen 57% amid a broader cooldown in the memecoin market, which has shed 25% of its total capitalization since January, according to CoinMarketCap.
Safety Shot said it positioned itself for the shift by clearing all debt and maintaining over $15 million in cash reserves. It also plans to raise $35 million through the issuance of preferred shares convertible to common stock. CEO Jarrett Boon described the move as “a bold first step in a broader corporate evolution,” aiming to align the company with “one of the most exciting ecosystems in digital assets.”
The strategy mirrors similar moves by other public companies, such as GD Culture Group, which in May announced plans to raise up to $300 million for a crypto treasury including the TRUMP memecoin. In the same light, TikTok publicly rejected allegations that its Chinese owners are investing in a memecoin associated with Trump, pushing back against claims made by California Representative Brad Sherman.
Despite the optimism from management, the market’s response was brutal—Safety Shot’s shares plunged to $0.59 in after-hours trading. Formerly known as Jupiter Wellness, the company produces the Sure Shot blood alcohol detox drink and was founded by Boon, who also co-founded GBB Drink Lab.
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