Nasdaq-listed Safety Shot faces sharp drop after BONK treasury move

Safety Shot, listed on Nasdaq, saw its shares drop 50% after announcing a new treasury strategy centered on the Bonk (BONK) memecoin. The company plans to purchase BONK worth $25 million through a strategic partnership with the token’s founders.

Bonk is a Solana-based token with a market capitalization of approximately $1.9 billion and 77 trillion tokens in circulation. Its price peaked in November 2024 but has declined 57% over the past six months.

Safety Shot’s management stated that BONK provides competitive advantages over other memecoins due to its speed and low transaction costs. Competitors such as Shiba Inu and Pepe are constrained by high Ethereum network fees and slower speeds, while Dogecoin is considered inflationary.

Prior to this transaction, the company paid off all debts and maintained over $15 million in cash. Plans also include issuing $35 million in preferred shares, convertible into common stock.