Safety Shot Inc. (NASDAQ: SHOT), a publicly traded wellness beverage company, revealed a strategic alliance with Bonk founding contributors, receiving $25 million in BONK tokens to seed its new memecoin-centric treasury strategy. The deal includes issuing $35 million in convertible preferred shares, granting token proceeds and equity upside to early contributors.
Following the announcement, Safety Shot’s share price plummeted by 50 percent as after-hours trading reflected investor concerns over the risks of integrating a high-volatility memecoin into a corporate balance sheet. Critics underscored BONK’s speculative nature, pointing to a recent 57 percent decline from its November 2024 peak and the limited liquidity on secondary markets.
Company management emphasised the technical advantages of the Solana-based BONK ecosystem—sub-second finality and sub-cent transaction costs—but acknowledged inherent volatility. CEO Jarrett Boon described the move as the first stage in a broader corporate evolution, targeting revenue diversification through exposure to on-chain fee generation and creator-economy growth.
Regulatory scrutiny also looms, as the US Securities and Exchange Commission continues to evaluate memecoin classifications. Safety Shot has undertaken to bolster its compliance and risk-management frameworks, retaining AML/KYC advisors and reinforcing audit protocols. The company’s financial disclosures highlight $15 million in cash reserves and the full settlement of outstanding debt to support the treasury initiative.
Looking ahead, Safety Shot plans phase-two integration of BONK into consumer marketing campaigns, loyalty programs, and limited-edition NFT beverage releases. The memecoin allocation will be managed via a locked-up smart contract vesting over 12 months to mitigate immediate sale-pressure, with quarterly reports on token performance and liquidity trends.
Investors will monitor Safety Shot’s stock trajectory as the treasury strategy unfolds, weighing potential yield from memecoin ecosystem activity against dilution and balance-sheet risks. The outcome may set a precedent for other small-cap public companies exploring alternative asset allocations in the rapidly evolving DeFi landscape.
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