Safety Shot Faces Backlash: $25M BONK Investment Hits Investors Hard

What’s Going On?

Nasdaq-listed beverage maker Safety Shot revealed a $25 million investment in Bonk (BONK), a Solana-based memecoin. The company also secured a 10% revenue stake in Bonk.fun, one of the largest memecoin launchpads. Despite plans to leverage BONK’s transaction speed and deflationary design, investors reacted sharply—sending Safety Shot’s stock falling over 50%, down to around $0.59 in after-hours trading.

Market Context

• Bonk.edge vs. volatility: Safety Shot highlighted BONK’s low fees and operational speed as advantages over memecoin peers like SHIB and Dogecoin.
• Strategic restructuring: The company paid off debt, holds $15 million in cash, and plans to issue $35 million in convertible preferred shares. CEO Jarrett Boon described the strategy as “a bold first step” in their corporate evolution.
• Investor resistance: Critics question deploying treasury capital into highly speculative assets like memecoins amid broader market volatility.

Why It Matters Globally

• Corporate crypto adoption faces scrutiny: This episode underscores tensions between ambitious digital asset strategies and investor risk tolerance.
• Memecoin treasury models under review: As more public companies venture into digital tokens, safety and governance become key considerations for global stakeholders.

Coinccino Insight

"Safety Shot’s memecoin gamble underscores a pivotal lesson: going all-in on speculative assets can rattle investors fast. It’s a reminder that treasury strategies need both innovation and prudence—especially when memecoins are involved."