Stocks for the drinks company Safety Shot, listed on NASDAQ, have plummeted by 50% following their announcement to invest $25 million in Bonk Memecoin as part of a new financial strategy.
On Monday, the company revealed a strategic partnership with Bonk’s founding contributors, indicating a deeper involvement in the Memecoin ecosystem.
Safety Shot explained that their decision to prioritize Memecoin as a key financial asset was due to its “clear benefits over its competitors.”
The tokens based on the Solana network claim to “benefit from advanced technology that enables quick, low-cost transactions.”
This gives Bonk a competitive edge over other Memecoins like Shiba Inu and Pepe.
Currently, Bonk ranks as the fifth largest meme coin by market capitalization, standing at $1.9 billion with 77 trillion tokens in circulation. While prices peaked in November 2024, they have dropped 57% in the past six months, likely due to a decline in meme coin popularity.
Safety Shot stated it was well-prepared for this move, having cleared all outstanding debts and maintaining over $15 million in cash. The company also plans to issue preferred shares valued at $35 million, which can be converted into common stock.
“By collaborating with one of the most exciting ecosystems in digital assets, we are taking a bold first step toward evolving into a broader company,” remarked CEO Jarrett Boon.
Cointelegraph reached out to Safety Shot for more information but did not receive a prompt response.
Safety Shot Stock Decline
The market reaction was unfavorable, as the company’s stock fell more than 50% on Monday, dropping to $0.59 after hours of trading.
Previously known as Jupiter Wellness, Safety Shot produces blood alcohol detox drinks branded as Sure Shot. Boone, who co-founded GBB Drink Lab, played a pivotal role in developing Safety Shot.
The company’s shares have increased by 36% over the past month but have seen a 22.5% decline since the beginning of the year.
Safety Shot’s Position in the Memecoin Sector
Safety Shot is not the first public company to enter the Memecoin Treasury space. GD Culture Group, a company focused on live streaming and e-commerce, announced in May plans to raise up to $300 million through cryptocurrency holdings that include a Memecoin named after the U.S. president.
While the overall market capitalization of Memecoins has fallen by 25% since the start of the year, the broader crypto market has experienced a 22% increase during the same period.
