What was meant to be a daring leap into the crypto world turned into a rough landing for Safety Shot.
The Nasdaq-listed beverage company stunned investors this week by announcing it would make the Solana-based memecoin Bonk the centerpiece of its corporate treasury. Within hours of the reveal, its stock had plunged by over 50%.
The company, known for producing an alcohol detox drink, struck a deal with Bonk’s founding contributors to integrate deeply into the memecoin’s community.
As part of the strategy, Safety Shot committed $25 million to purchasing Bonk, arguing that its low fees and lightning-fast transactions set it apart from competitors like Shiba Inu, Pepe, and Dogecoin. Management claimed these technical benefits give Bonk a meaningful edge in the crowded meme-token arena.
Bonk is currently the fifth-largest memecoin, boasting a $1.9 billion market cap and more than 77 trillion tokens in circulation. While it enjoyed a speculative peak late last year, the token’s price has since been cut nearly in half as the memecoin hype cycle cooled.
To position itself for the move, Safety Shot cleared all debt and built a $15 million cash buffer. The company also plans to issue $35 million in preferred shares, which can be converted into common stock. CEO Jarrett Boon framed the Bonk investment as the opening move in a much larger transformation, designed to place the company firmly in the digital asset economy.
Investors, however, reacted sharply. After the announcement, Safety Shot shares sank to $0.59 in after-hours trading, wiping out recent gains. This is despite the stock having rallied 36% in the past month, although it remains down more than 22% for the year.
Corporate memecoin treasuries remain rare, though not unheard of. Earlier this year, GD Culture Group revealed a plan to raise up to $300 million for a crypto portfolio that would include TRUMP, the token inspired by the U.S. president. Yet the broader memecoin market has struggled in 2025, shedding roughly a quarter of its value since January, even as the wider crypto market has risen 22%.
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Source: https://coindoo.com/bonk-bet-sends-safety-shot-stock-plunging-over-50/