Shares in Nasdaq-listed drinks maker Safety Shot tanked 50% after announcing a plan to buy $25 million worth of the Bonk memecoin as part of a new treasury strategy.
The company announced a strategic alliance with the Bonk founding contributors on Monday to deeply integrate the company with the memecoin ecosystem.
Safety Shot said its decision to focus on the memecoin as the core treasury asset “is based on its clear and distinct advantages over its competitors.”
The Solana-based token “benefits from superior technology that enables high-speed, low-cost transactions,” it said.
It added that this gives Bonk an edge over rivals such as Shiba Inu (SHIB) and Pepe (PEPE), which are “constrained by the high fees 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…
