Shares in Nasdaq-listed drinks maker Safety Shot tanked 50% after asserting a plan to purchase $25 million value of the Bonk memecoin as a part of a brand new treasury technique.
The agency introduced a strategic alliance with the Bonk founding contributors on Monday to deeply combine the corporate with the memecoin ecosystem.
The agency acknowledged that its determination to give attention to the memecoin because the core treasury asset “relies on its clear and distinct benefits over its opponents.”
The Solana-based token “advantages from superior expertise that permits high-speed, low-cost transactions,” it acknowledged.
It added that this provides Bonk an edge over rivals reminiscent of Shiba Inu (SHIB) and Pepe (PEPE), that are “constrained by the excessive charges and slower speeds” of Ethereum and Dogecoin (DOGE), which is inflationary.
Bonk is the fifth-largest memecoin by market capitalization, with $1.9 billion and 77 trillion tokens in circulation. Prices hit a peak in November 2024 however have since tanked 57% from that top because the memecoin frenzy light over the previous six months.
Safety Shot mentioned it ready for this transfer by settling all excellent debt and sustaining over $15 million in money. It plans to concern most popular shares at a price of $35 million that are convertible into shares of the corporate’s widespread inventory.
By aligning with “some of the thrilling ecosystems in digital property,” we’re taking a daring first step in a wider company evolution for our firm, mentioned CEO Jarrett Boon.
Cointelegraph contacted Safety Shot for extra particulars however didn’t obtain a right away response.
Safety Shot inventory slumps
The transfer did not impress buyers as firm inventory (SHOT) slumped greater than 50% on Monday, in a fall to $0.59 in after-hours buying and selling.
Safety Shot, previously often called Jupiter Wellness, manufactures a blood alcohol detox drink beneath the model Sure Shot. Boon was the co-founder and CEO of GBB Drink Lab, which developed Safety Shot.
Related: Traditional corporations enter the crypto treasury sport with BTC, XRP and SOL buys
Company shares have surged 36% over the previous month however stay down 22.5% for the reason that starting of the yr.
Not the primary company memecoin treasury
This shouldn’t be the primary public agency to launch a memecoin treasury. In May, GD Culture Group, which focuses on livestreaming and e-commerce, introduced plans to boost as much as $300 million for a crypto treasury reserve that would come with the US President’s namesake memecoin TRUMP (TRUMP).
Memecoin market capitalization has declined by 25% for the reason that starting of the yr, whereas the general crypto market cap is up 22% in the identical interval, in accordance to CoinMarketCap.
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