Safety Shot Stock Falls 50% After $25M BONK Partnership Announcement

Safety Shot, Inc., a producer of wellness beverages, has unveiled a major strategic pivot by forming a partnership with the BONK memecoin's founding contributors. As part of the agreement, the company will receive $25 million worth of BONK tokens and issue $35 million in convertible preferred shares. The company has also cleared all its existing debt and now holds over $15 million in cash. Dominari Securities, LLC, is serving as Safety Shot’s exclusive financial advisor for the deal [1].

BONK, a memecoin built on the Solana blockchain, is positioned by Safety Shot as a superior alternative to competing tokens such as Shiba Inu (SHIB), Pepe (PEPE), and Dogecoin (DOGE). The company highlights Solana’s faster and cheaper transactions and BONK’s deflationary token-burning mechanism as key advantages. BONK currently boasts a market capitalization of nearly $2 billion and over 980,000 holders [2].

CEO Jarrett Boon described the partnership as the first phase of a broader corporate transformation, stating that it represents a bold step into the digital assets space. He emphasized the company’s intention to continue evolving its beverage brands while integrating into the BONK ecosystem. However, the market has responded with skepticism. Following the announcement, Safety Shot’s stock price fell more than 50% in after-hours trading to $0.56, despite a 14% increase over the previous month [3].

The sharp decline underscores investor concerns about the company’s pivot to memecoins. Safety Shot is not alone in this endeavor—other publicly traded firms, such as GD Culture Group and Thumzup Media Corporation, have similarly proposed crypto-based treasury strategies. However, the broader memecoin market has declined by 25% this year, even as the overall crypto market has risen by 22%. BONK itself has lost 11.37% in the last 24 hours, trading at $0.00002490 [2].

Analysts suggest that while Safety Shot is trying to leverage the speculative appeal of memecoins, the market appears wary of such high-risk moves, especially from traditional stock-listed companies. The steep drop in Safety Shot’s share price mirrors similar cases where firms have attempted to capitalize on crypto trends. The company’s long-term success will depend on how the BONK token performs and how well it integrates into Safety Shot’s broader business strategy [3].

Source:

[1] Nasdaq-listed firm launches $25M BONK treasury play (https://cointelegraph.com/news/nasdaq-listed-firm-launches-25m-bonk-treasury-play)

[2] Safety Shot Stock Plummets 50% After $25M Bonk (https://www.ainvest.com/news/safety-shot-stock-plummets-50-25m-bonk-memecoin-investment-2508/)

[3] Safety Shot Plans $25M BONK Memecoin Treasury But (https://www.cryptotimes.io/2025/08/12/safety-shot-plans-25m-bonk-memecoin-treasury-but-share-slumps-50/)