Safety Shot has partnered with BONK’s founding team to build a $25 million memecoin treasury, but the market reaction was swift and brutal.
Key Takeaways
- 1Safety Shot is forming a $25 million BONK token treasury through a strategic alliance with the memecoin’s founding contributors.
- 2The company will issue $35 million in preferred shares in exchange for the tokens, which are part of a broader crypto-focused strategy.
- 3Shares of Safety Shot dropped 50 percent after the announcement, highlighting investor concern over the risky treasury play.
- 4BONK’s Solana-based speed and low costs were cited as reasons for choosing it over Ethereum-based memecoins.
What Happened?
Safety Shot, a Nasdaq-listed wellness beverage company, announced a bold shift in its corporate strategy on August 11 by creating a $25 million BONK token treasury. In a deal with BONK’s founding contributors, the company will issue $35 million in convertible preferred shares in exchange for the tokens. While executives called the move part of a “broader corporate evolution,” the stock market swiftly reacted with a sharp selloff, dropping the company’s share price by more than 50 percent.
Safety Shot’s Crypto Bet
Safety Shot, known for its blood alcohol-reducing drink, is entering the world of decentralized finance. According to CEO Jarrett Boon, this marks a strategic first step as the company seeks to align with the digital asset ecosystem.
The company emphasized BONK’s high-speed, low-cost infrastructure built on the Solana blockchain as a primary reason for the decision. Compared to Ethereum-based rivals like Shiba Inu and Pepe, which face higher transaction costs and slower speeds, BONK’s efficiency was a key factor. Additionally, Safety Shot pointed out that Dogecoin is inflationary, making it less appealing for long-term holding.
BONK is currently the fifth-largest memecoin, with a market cap near $2 billion and over 980,000 on-chain holders. Despite being down 57 percent from its November 2024 peak, it remains a prominent player in the memecoin space.
Market Response: Shares Tumble
Investors did not share the company’s optimism. Safety Shot’s stock plummeted over 50 percent, falling to $0.59 in after-hours trading following the announcement. This came despite the company recently eliminating its outstanding debt and holding more than $15 million in cash reserves.
The stock had gained 36 percent in the last month but was already down over 22 percent for the year. This latest move appeared to spark concerns about the volatility and unpredictability of memecoin assets on a corporate balance sheet.
Not the Only One
Safety Shot is not alone in exploring altcoin-based treasuries. Other public firms have taken similar paths, such as GD Culture Group, which announced a $300 million plan to build a memecoin reserve including the TRUMP token. Companies like Bit Origin and SharpLink Gaming are also experimenting with Dogecoin and Ethereum-based holdings.
In the broader crypto market, memecoins have seen their combined market capitalization drop 25 percent in 2025, even as the total crypto market has risen by 22 percent, reflecting cautious optimism mixed with lingering skepticism.
CoinLaw’s Takeaway
I get the ambition here, but wow, this is a gutsy move. Safety Shot is essentially staking a chunk of its future on a highly volatile memecoin. On one hand, it shows real conviction and a willingness to ride the digital asset wave. On the other, it’s a major gamble, and the 50 percent stock drop shows just how nervous investors are about tying corporate value to speculative tokens. I admire the boldness, but I’d want to see a stronger risk mitigation plan before giving this strategy a thumbs-up.
