Shares of Nasdaq-listed Safety Shot fell 50% after the announcement of a $25 million investment in the Bonk memecoin as part of a new treasury strategy.
Safety Shot's Investment Plans
Safety Shot announced a strategic alliance with the founders of Bonk, aiming to integrate deeper into the token's ecosystem. According to the company, the decision to focus on Bonk as its primary treasury asset is driven by its 'clear and distinct advantages over its competitors.'
Investor Reaction to the News
CEO Jarrett Boon described the move as 'a bold first step in a much broader corporate evolution,' highlighting that the company had cleared all outstanding debt and retained over $15 million in cash before making the investment. However, the market's reaction was negative, with the company's shares dropping to $0.59 in after-hours trading.
State of the Memecoin Market
Safety Shot is not the first publicly traded company to venture into the memecoin space. The overall memecoin market has been struggling in 2025, experiencing a 25% drop in total market capitalization since the start of the year, even as the overall cryptocurrency market cap has risen by 22%.
The market is responding to Safety Shot's attempts to shift its strategy; however, the high risks associated with memecoins may impact the company's future results.
