Safety Shot Faces Backlash: $25M BONK Investment Hits Investors Hard
Safety Shot’s $25M investment in BONK, a Solana-built memecoin, sparked a 50% stock drop—highlighting investor pushback against speculative treasury strategies. The move features a revenue stake in Bonk.fun but also raises broader questions about governance and digital asset risk management among public companies.
Coinccino 
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."
