BONK Memecoin Strategy Backfires For Safety Shot

Key Takeaways

• Safety Shot’s $25M BONK memecoin bet marks one of the boldest corporate treasury moves in the memecoin space.

• The company cited Solana’s speed and low fees as core reasons behind choosing BONK over Ethereum-based competitors.

• Despite settling debt and securing cash reserves, the move triggered a 50% drop in company stock.

• BONK remains the 5th-largest memecoin, but its value has declined 57% since its November 2024 peak.

• The corporate use of memecoins is growing, but it remains high-risk and speculative.

$25 Million Treasury Allocation To BONK

Safety Shot recently revealed its decision to allocate $25 million of its capital toward purchasing BONK memecoin, a Solana-based cryptocurrency that has quickly become one of the most recognized tokens in the memecoin sector.

Source: globenewswire.com

The company said it had entered into a strategic alliance with BONK’s founding contributors, aiming for a “deep integration” within the token’s community and technological infrastructure.

Why BONK? Speed, Cost, & Ecosystem Potential

According to Safety Shot, the decision to back BONK over other popular tokens like SHIB, PEPE, and DOGE was largely driven by technical and economic advantages.

The company cited:

• High-speed, low-cost transactions via the Solana blockchain

• Deflationary supply dynamics, compared to Dogecoin’s inflationary model

• Greater scalability and ecosystem support

Shareholders React: 50% Stock Drop

Market Response To Treasury Pivot

Despite the bold narrative, the stock market reacted swiftly and negatively. Safety Shot (NASDAQ: SHOT) shares plunged by more than 50% in after-hours trading, falling to just $0.59 per share.

Source: Google Finance

This sharp drop wiped out recent gains and placed the stock down over 22% for the year. Investors appeared wary of the company’s sudden shift into crypto territory, particularly in a volatile segment like memecoins.

Corporate Strategy Or Crypto Gamble?

The pivot is part of what CEO Jarrett Boon described as a “broader corporate evolution.” Boon, a co-founder of GBB Drink Lab (developers of Safety Shot’s blood alcohol detox drink), argued that aligning with the BONK ecosystem is a forward-looking decision.

Boon said:

“We’re taking a bold first step by integrating with a rapidly growing digital asset community.”

However, critics argue that the shift feels more speculative than strategic. With memecoin market capitalization down 25% year-to-date (per CoinMarketCap), the timing has raised eyebrows among analysts and shareholders alike.

Financial Foundation Behind The Play

Debt-Free & Cash-Rich

To fund the move, Safety Shot disclosed it had:

• Settled all outstanding debt

• Maintained over $15 million in cash

• Plans to issue $35 million in preferred shares, convertible into common stock

This financial restructuring, the company claims, provides a solid foundation for experimenting with digital asset treasury strategies.

Other Companies Entering The Space

Safety Shot is not alone in the memecoin treasury experiment. In May, GD Culture Group announced its plan to raise $300 million to build a crypto treasury that includes the politically themed TRUMP memecoin.

This trend mirrors earlier moves by tech companies like MicroStrategy with Bitcoin, but now it’s playing out in the riskier, meme-centric corners of the crypto market.

FAQ

What is BONK memecoin?

BONK is a Solana-based memecoin designed for high-speed, low-cost transactions. It gained popularity in late 2024 and is among the top five memecoins by market cap.

Why did Safety Shot invest in BONK?

Safety Shot believes BONK offers superior technology compared to other memecoins, and sees it as a strategic asset for long-term integration and innovation.

How much did Safety Shot invest?

The company committed to a $25 million BONK purchase as part of a new treasury strategy.

How did the market respond?

Investors reacted negatively. Safety Shot stock dropped over 50% following the announcement.

Is this a trend among public companies?

Yes, other companies like GD Culture Group are also exploring memecoin-based treasuries, indicating growing interest in alternative digital assets.