Shares in Safety Shot (NASDAQ: SHOT) collapsed by more than 50% on Monday after the wellness drinks manufacturer revealed plans to allocate $25 million to Bonk (BONK), a Solana-based memecoin, as the core of its new corporate treasury strategy.
The company announced a strategic alliance with Bonk’s founding contributors, aiming for deep integration into the memecoin’s ecosystem. Management said the move was “based on [Bonk’s] clear and distinct advantages over competitors,” highlighting its high-speed, low-cost transaction capabilities compared to other major memecoins.
According to the company, BONK’s technology gives it an edge over Shiba Inu (SHIB) and Pepe (PEPE) — both tied to Ethereum’s higher fees — and Dogecoin (DOGE), which it described as “inflationary.” Bonk currently ranks as the fifth-largest memecoin by market cap, valued at $1.9 billion with 77 trillion tokens in circulation. While BONK reached a peak in November 2024, its price has since dropped 57% amid cooling memecoin hype.
Safety Shot prepared for the move by paying off all outstanding debt and retaining over $15 million in cash. It also plans to issue $35 million in preferred shares, convertible into common stock, to support the transition.
“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,” said CEO Jarrett Boon.
Despite the ambition, investors reacted sharply, sending the stock down to $0.59 in after-hours trading. Safety Shot, formerly known as Jupiter Wellness, manufactures the Sure Shot blood alcohol detox drink and was co-founded by Boon through GBB Drink Lab.
The company’s shares had risen 36% in the past month, but are now down 22.5% year-to-date following the sell-off.
This isn’t the first time a publicly listed firm has pursued a memecoin treasury strategy. In May, GD Culture Group announced plans to raise up to $300 million to invest in digital assets, including memecoins.
With the market’s initial verdict delivering a steep decline, Safety Shot’s high-risk pivot will now be tested against both memecoin market volatility and shareholder patience.
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