Wellness drinks maker Safety Shot, Inc. has announced a major shift in its business strategy by teaming up with the founding contributors of the BONK memecoin.
As part of the deal, Safety Shot will receive $25 million worth of BONK tokens and, in return, issue $35 million worth of preferred shares that can be converted into common stock. Before making this move, Safety Shot cleared all its debt and now holds over $15 million in cash. Dominari Securities, LLC, is acting as Safety Shot’s sole financial advisor for the deal.
Why BONK?
The company says BONK, which runs on the Solana blockchain, has advantages over rival memecoins like Shiba Inu (SHIB), Pepe (PEPE), and Dogecoin (DOGE). Solana offers faster and cheaper transactions, while BONK also has a deflationary system that burns tokens to increase scarcity. BONK currently has a market cap of nearly $2 billion and over 980,000 holders.
CEO Jarrett Boon called the partnership “the first stage of a much broader corporate evolution” for the company. “By aligning with one of the most exciting ecosystems in digital assets, we are taking a bold first step,” he said, adding, “We look forward to sharing more details about the full scope of this strategy with our shareholders in the coming days as we continue to lead our beverage brands to new heights.”
Safety Shot Share Price Slumps 50%
Although the move could be considered pivotal, its shareholders seem to have not been impressed. After the announcement, Safety Shot’s stock price plunged over 50% to $0.56 in after-hours trading. The drop comes despite the shares gaining 14% in the past month.
Safety Shot isn’t the only public company experimenting with memecoin treasuries. Earlier this year, GD Culture Group announced plans to raise $300 million for a crypto reserve that includes the TRUMP memecoin. In July, Thumzup Media Corporation approved plans to invest up to $250 million in a diversified crypto portfolio.
However, the overall memecoin market is down 25% this year, even though the broader crypto market is up 22%. Even BONK is trading at $0.00002490, down 11.37% in the past 24 hours with a $2 billion market cap.
Also Read: Robinhood Adds BONK, PENGU, PNUT, XLM, Prices Fall After Listing
