Safety Shot Stock Plummets 50% After $25M Bonk Memecoin Investment

A Nasdaq-listed beverage company, Safety Shot, experienced a sharp drop in its stock price after announcing a $25 million treasury investment in the Solana-based memecoin Bonk. The stock plummeted by over 50% in after-hours trading following the Monday announcement of a strategic partnership with Bonk’s founding contributors. The company explained that the move was motivated by Bonk’s technological advantages over competitors like Shiba Inu (SHIB) and Pepe (PEPE), which it claimed suffer from slower processing speeds and higher fees due to their reliance on Ethereum and Dogecoin [1].

The firm further stated that it had cleared all outstanding debts and maintained a cash balance of over $15 million prior to the investment, planning to raise an additional $35 million through a preferred share issuance. It described the partnership as a pivotal step in a broader corporate transformation, aligning with what it called “one of the most exciting ecosystems in digital assets” [1].

However, the market responded with skepticism, sending the stock price to $0.59. Safety Shot, formerly Jupiter Wellness, markets a blood alcohol detox drink under the brand Sure Shot. Its CEO, Jarrett Boon, is also a former co-founder of GBB Drink Lab. The stock had risen by 36% over the past month but was still down 22.5% year to date [1].

This is not the first instance of a public company turning to memecoins for treasury allocations. Earlier this year, GD Culture Group, a firm focused on livestreaming and e-commerce, announced plans to raise up to $300 million for a crypto treasury that would include the TRUMP memecoin [1].

The memecoin market has generally struggled in 2025, with a 25% decline in total market capitalization on CoinMarketCap, while the broader crypto market has risen 22%. Bonk itself has lost 57% from its peak in November 2024 and is now the fifth-largest memecoin with a market cap of $1.9 billion and 77 trillion tokens in circulation [1].

Analysts noted that the sharp drop in Safety Shot’s stock price illustrates the risks companies face when aligning with speculative assets. While some see such moves as innovative and aligned with evolving market trends, others warn that they can misalign corporate strategy with investor interests, especially when the rationale behind the decision is not clearly communicated [1].

The incident has sparked renewed debate about corporate governance and treasury management in the context of volatile digital assets. As companies increasingly explore unconventional investment strategies, transparency and risk disclosure will be crucial in maintaining investor confidence.

Source: [1] Nasdaq-listed firm slumps 50% on BONK memecoin treasury play (https://cointelegraph.com/news/nasdaq-listed-firm-launches-25m-bonk-treasury-play?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)