Solana News Today: Safety Shot's $25M BONK Investment Drives 50% Stock Slide

Safety Shot Inc. (NASDAQ: SHOT), a producer of wellness drinks including a line of blood alcohol detox products, announced a $25 million investment in the Solana-based memecoin BONK as part of a strategic corporate treasury initiative. The move, which included a 10% revenue stake in BONK.fun—a leading Solana memecoin launchpad—triggered a severe market reaction. Shares of Safety Shot plummeted more than 50% in the days following the announcement, despite a 36% rise in the stock price over the prior month [1].

According to the company’s official statement, the investment is intended to diversify its treasury into high-liquidity crypto assets. Safety Shot plans to reinvest approximately 90% of the revenue generated from its stake in BONK.fun back into BONK token purchases, establishing a recurring cycle of investment and return. The company also disclosed plans to issue preferred shares valued at $35 million, which will be convertible into common stock [2].

BONK has emerged as a major player in the memecoin space, with a market capitalization of $1.9 billion as of the announcement. The token powers a growing ecosystem of over 400 Solana-based applications in decentralized finance, gaming, and consumer services. BONK.fun, the platform through which Safety Shot gains its revenue stake, controls more than 80% of Solana’s token launch market and generated over $35 million in user fees in July alone [3].

CEO Jarrett Boon emphasized that the investment was not simply a speculative move into cryptocurrency but rather an acquisition of a stake in a “highly profitable engine” within the digital assets space. The company highlighted the Solana blockchain’s advantages in speed and cost efficiency as a key differentiator over Ethereum-based competitors like Shiba Inu and Dogecoin [4].

Despite these strategic justifications, the market has remained skeptical. Safety Shot’s stock price continued to trade at a significant discount, with shares down 22.5% year-to-date as of the time of the announcement. Analysts suggest that the volatility of the memecoin market and the novelty of corporate treasuries investing in such assets have contributed to the negative investor sentiment [5].

The investment is part of a broader trend of institutional interest in the memecoin sector. Earlier in the year, GD Culture Group, a firm focused on livestreaming and e-commerce, announced a $300 million plan to establish a crypto treasury that would include the TRUMP memecoin. However, the overall memecoin market has seen a 25% decline in market capitalization since the start of the year, according to CoinMarketCap [5].

Safety Shot’s decision to allocate a significant portion of its corporate funds to BONK reflects a bold strategy to align its fortunes with the performance of the token. However, the outcome of this strategy will depend on how well BONK continues to perform and how effectively Safety Shot can manage its exposure to a market characterized by rapid price swings and speculative activity.

Source:

[1] Blockonomi - [https://blockonomi.com/safety-shot-invests-25m-in-bonk-memecoin-stock-drops-50/](https://blockonomi.com/safety-shot-invests-25m-in-bonk-memecoin-stock-drops-50/)

[2] The - [https://www.cryptotimes.io/2025/08/12/safety-shot-plans-25m-bonk-memecoin-treasury-but-share-slumps-50/](https://www.cryptotimes.io/2025/08/12/safety-shot-plans-25m-bonk-memecoin-treasury-but-share-slumps-50/)

[3] Investing.com - [https://ng.investing.com/news/cryptocurrency-news/safety-shot-forms-alliance-with-bonk-contributors-for-25m-token-deal-432SI-2055554](https://ng.investing.com/news/cryptocurrency-news/safety-shot-forms-alliance-with-bonk-contributors-for-25m-token-deal-432SI-2055554)

[4] CoinDesk - [https://www.coindesk.com/author/shaurya-malwa](https://www.coindesk.com/author/shaurya-malwa)

[5] Stocktwits - [https://stocktwits.com/symbol/BONK.X](https://stocktwits.com/symbol/BONK.X)