Stock in Drinks Maker Safety Shot, registered with the NASDAQ, has now tanked 50% after announcing plans to buy Bonk Memecoin worth $25 million as part of its new financial strategy.
The company announced its strategic alliance with Bonk founding contributors on Monday, integrating the company deeply with the Memecoin ecosystem.
Safety Shot said the decision to focus on Memecoin as a core financial asset was “based on clear and clear benefits over its competitors.”
The Solana-based tokens say “benefits from superior technology that allows for fast, low-cost transactions.”
This gives Bonk an edge over rivals such as Shiba Inu (Shib) and Pepe (Pepe).
Bonk is the fifth largest memo coin by market capitalization, with $1.9 billion and 77 trillion talk tokens in circulation. Prices peaked in November 2024, but have since dropped 57% as the memokine frenzy has waned over the past six months.
Safety Shot said it prepared for the move by setting all outstanding obligations and maintaining more than $15 million in cash. The company plans to issue preferred shares at a value of $35 million. This can be converted into shares of our common stock.
By working with “one of the most exciting ecosystems in digital assets,” we are taking a bold first step in the evolution of a much wider company for us, said CEO Jarrett Boon.
Cointelegraph contacted Safety Shot for more details, but did not receive an immediate response.
Safety Shot Stock Slump
The move failed to impress investors as the company’s stock (shot) fell more than 50% on Monday, falling to $0.59 in trading after opening hours.
Safety Shot, formerly known as Jupiter Wellness, produces blood alcohol detox drinks under the brand Sure Shot. Boone was co-founder and CEO of GBB Drink Lab, which developed Safety Shot.
Related: Traditional companies will join Crypto Treasury games using BTC, XRP and Sol Buys
The company’s shares have risen 36% in the past month, but have fallen 22.5% since the start of the year.
First Corporate Memo Coin is not the Ministry of Finance
Safety Shot is not the first public company to launch Memecoin Treasury. In May, GD Culture Group, focusing on live streaming and e-commerce, announced plans to raise up to $300 million in Cryptocurrency sanctuaries, including the US president’s name Memecoin Trump.
According to CoinmarketCap, MemeCoin’s market capitalization has declined by 25% since the start of the year, but the overall crypto market capitalization has increased by 22% over the same period.
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