The Nasdaq-listed beverage company Safety Shot announced that it will invest $25 million to purchase Bonk meme coin as part of its new treasury strategy, causing the company's stock price to drop by 50%.
The company announced on Monday that it has reached a strategic partnership with Bonk's founding contributors, aiming to deeply integrate the meme coin ecosystem.
The company stated that the decision to make the meme coin a core treasury asset is "based on its clear and unique advantages among competitors."
The company pointed out that this Solana-based token "has advanced technology that enables fast and low-cost transactions."
The company added that Bonk, based on Solana, has the advantage of fast and low-cost transactions. In contrast, competitors like Shiba Inu (SHIB) and Pepe (PEPE) are limited by Ethereum's high fees and low speed, while Dogecoin (DOGE) has inflationary properties. Therefore, Bonk has stronger competitiveness.
Bonk is the fifth-largest meme coin by market capitalization, with a market cap of $1.9 billion and a circulating supply of 770 trillion coins. The coin reached a new price high in November 2024 but has seen a 57% drop from that peak in the past six months due to the decline in meme coin popularity.
Safety Shot stated that the company has repaid all outstanding debts and holds over $15 million in cash. The company plans to issue $35 million in convertible preferred stock, which can be converted into common stock.
Boon stated that by collaborating with "one of the most vibrant ecosystems in the digital asset space," the company has taken an important first step in its corporate transformation.
Cointelegraph has contacted Safety Shot for more information but has not received a response as of the time of publication.
As a result of this decision, the company's stock (SHOT) fell by more than 50% on Monday, with after-hours trading prices dropping to $0.59.
Safety Shot, formerly known as Jupiter Wellness, produces the Sure Shot brand of beverages that promote blood alcohol metabolism. CEO Jarrett Boon was a co-founder and CEO of GBB Drink Lab, which developed the Safety Shot product.
The company's stock price has risen 36% in the past month, but it has cumulatively dropped 22.5% since the beginning of the year.
This is not the first publicly listed company to launch a meme coin treasury. In May of this year, GD Culture Group, focused on live streaming and e-commerce, announced plans to raise up to $300 million for its crypto treasury reserves, which include the meme coin TRUMP (TRUMP) named after the U.S. president.
According to CoinMarketCap data, the market capitalization of meme coins has dropped by 25% since the beginning of the year, while the overall cryptocurrency market cap has increased by 22%.
Related: ALT5 Sigma raises $1.5 billion for the first World Liberty Financial (WLFI) corporate treasury
Original article: “Nasdaq-listed company sees stock price plummet 50% due to investment in BONK meme coin”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
