The beverage manufacturer Safety Shot, listed on NASDAQ, announced plans to purchase $25 million worth of Bonk meme coins as a new treasury strategy, leading to a 50% plunge in its stock price.
The company announced on Monday that it has formed a strategic alliance with Bonk's founding contributors, hoping to deeply integrate with the meme coin ecosystem.
The company pointed out that the choice of meme coins as core treasury assets stems from their obvious advantages. The Solana-supported Bonk token has technical advantages of high speed and low-cost transactions.
Bonk is the fifth largest meme coin by market capitalization, with a supply of 770 trillion and a market cap of $1.9 billion. Although its price peaked in November 2024, it has fallen 57% from that high over the past six months.
Safety Shot prepared for this move by clearing all debts and holding over $15 million in cash. The company plans to issue $35 million worth of preferred shares, convertible into common stock.
Safety Shot's stock price plummets
This move failed to impress investors, as the company's stock price plummeted over 50% on Monday, down to $0.59.
Safety Shot's predecessor was Jupiter Wellness, which produced the Sure Shot brand of blood alcohol detox drinks. Its CEO, Jarrett Boon, co-founded GBB Drink Lab.
Not the first corporate meme coin treasury case
Safety Shot is not the first public company to launch a meme coin treasury. In May of this year, GD Culture Group, focused on e-commerce and live streaming, announced plans to raise up to $300 million for a cryptocurrency treasury.
According to CoinMarketCap data, the market capitalization of meme coins has decreased by 25% since the beginning of the year, while the overall cryptocurrency market cap has increased by 22%.
