Safety Shot Plunges 5.00% as Regulatory Scrutiny and Strategic Shifts Fuel Investor Doubts

Safety Shot (SHOT) fell 5.00% on Monday, marking its second consecutive day of declines and a 6.00% drop over two days. The stock hit an intraday low of $0.05, its weakest level since June 2025, amid renewed investor concerns over its business strategy and regulatory risks.

The company’s strategic shift toward the BONK memecoin ecosystem has driven mixed market reactions. Safety Shot secured $25 million in BONK tokens and a 10% revenue-sharing deal with BONK.fun, while appointing key DeFi contributors to its board. However, these moves have not yet translated into clear financial benefits, as the firm continues to balance its traditional beverage operations with its pivot to digital assets.

Regulatory scrutiny has intensified, with the FDA investigating claims that Safety Shot’s product can reduce blood alcohol levels by 50% in 30 minutes. The agency is reviewing the scientific validity of these assertions and plans to inspect the company’s manufacturing facilities. Adverse consumer reports, including a severe reaction from one user, have further fueled doubts about product safety and regulatory compliance.

Corporate governance issues have also emerged. The resignation of CFO Danielle De Rosa and the departure of the company’s sole medical board member in 2025 raised questions about financial oversight. Recent board appointments, including DeFi experts, aim to align leadership with the company’s digital asset focus but may deepen uncertainties for investors seeking stability.

With Nasdaq compliance looming, Safety Shot has 180 days to meet minimum bid price requirements. The firm’s reliance on DeFi partnerships and speculative market interest may prove insufficient to stabilize its stock price, as regulatory and operational risks remain unresolved.