Solana's meme coin, BONK, aims to amass up to $115 million in its treasury by December's end
Safety Shot Inc., a well-known Arizona-based wellness drinks company, has announced a significant pivot in its business strategy. The company is now set to become a crypto treasury firm, marking a bold move into the digital assets sector.
This strategic shift comes as a result of a strategic alliance with the founding contributors of BONK, a leading Solana-based memecoin. Safety Shot secured approximately $25 million worth of BONK tokens in exchange for issuing $35 million in preferred shares convertible into common stock.
The move by Safety Shot mirrors the strategy of companies like MicroStrategy, which started buying up Bitcoin in 2020. This trend of publicly traded companies pivoting to create crypto treasuries, starting with Bitcoin and expanding to the fringes of the industry, has been gaining momentum.
The background to this pivot includes Safety Shot settling all outstanding debt and maintaining a strong cash reserve of over $15 million to prepare for the digital asset transition. The company has also reserved the Nasdaq ticker symbol "BNKK," signaling its commitment to becoming a crypto treasury firm.
Safety Shot’s strategy focuses on leveraging BONK's technical advantages. BONK is a memecoin built on the high-performance Solana blockchain, offering high-speed, low-cost transactions that are more efficient than competitors like Shiba Inu or Dogecoin, which operate on slower, more expensive networks such as Ethereum.
Moreover, BONK features deflationary tokenomics, including a burn mechanism supported by community initiatives that aim to increase scarcity and support long-term value. This contrasts with inflationary tokens like Dogecoin.
Furthermore, Safety Shot acquired a 10% revenue share in LetsBONK.fun, an important memecoin launchpad within the BONK ecosystem, integrating the company closely with the broader BONK digital economy.
The market reaction to this announcement was notably negative in the short term, with Safety Shot’s stock price dropping about 50% following the announcement, reflecting investor skepticism amid a cooling memecoin market despite the company’s strategic preparation and clear positioning.
The decision for Safety Shot to pivot to a BONK treasury company was influenced by its exclusive financial advisor, Dominari Securities, LLC. The company aims to acquire up to $115 million worth of the Solana meme coin by the end of the year.
Notably, SharpLink Gaming, another publicly traded company, has also seen its stock surge following the rise of Bitcoin, reflecting the broader trend of companies capitalizing on the growth of the cryptocurrency market.
[1] CoinDesk [2] BusinessWire [3] Yahoo Finance [4] MarketWatch [5] PR Newswire
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