Safety Shot has ventured boldly into the digital asset arena, launching a new subsidiary focused on the burgeoning BONK memecoin. This move underscores the growing interest in blockchain assets and highlights how traditional companies are adapting to the cryptocurrency landscape.
Safety Shot Introduces BONK Holdings LLC
On September 11, Safety Shot announced the establishment of BONK Holdings LLC, a dedicated subsidiary tasked with managing the company’s digital asset strategy. The company revealed it has acquired a significant stash of BONK tokens, totaling 228.9 billion.
This reserve comprises over 2.5% of the circulating supply of the memecoin, valued at approximately $55 million at current market prices. Safety Shot’s average purchase price for the tokens stands at $0.00002184, achieved through earlier initiatives and a recent $5 million acquisition in partnership with digital trading platform FalconX.
Rather than holding the tokens passively, Safety Shot plans to deploy its holdings within Solana’s DeFi ecosystem, utilizing them for staking, liquidity provision, and yield farming. The company asserts that this strategy will generate non-dilutive returns while enhancing its balance sheet.
Jarrett Boon, the CEO of Safety Shot, emphasized that the company views BONK as a “premier digital asset” and sees untapped value in integrating it with its existing consumer brands. By the end of August, the company had successfully raised $30 million to solidify its growth strategy and appointed Mitchell Rudy, a co-founder of BONK, to its board of directors.
Market Reactions: Safety Shot’s Stock Lags Despite BONK Gains
Despite its ambitious plans, Safety Shot’s shares have struggled to gain investor confidence. Following the announcement, SHOT stock fell to $0.37, its lowest point in two months, before closing slightly higher at $0.39, with minimal pre-market trading boost.
This decline suggests a cautious sentiment among equity investors, even as the company highlights the scale of its digital and cash assets, which far exceed its overall market capitalization of around $85.4 million.
In contrast, BONK itself has shown positive momentum, increasing by 8.3% in the past day and trading at $0.00002512 at the time of this report. Although the price is significantly lower than its all-time high of $0.00005825 reached in November 2024, the token remains one of the standout performers in the Solana ecosystem since its inception.
Price Outlook for BONK Indicates Bullish Potential
From a technical perspective, BONK’s chart suggests a possible bullish breakout. The memecoin has been trading within an ascending channel, with $0.0002377 acting as a solid support level. At the same time, $0.0002620 is a key resistance, and a breakthrough above this level could set the stage for a rally toward $0.0003620, representing a potential increase of 150% over recent levels.
While volatility remains a hallmark of BONK as a meme-inspired token, the increasing involvement of institutions like Safety Shot is beginning to shift the narrative. The company’s commitment to staking a substantial amount of BONK on DeFi platforms adds liquidity and legitimacy to the project. If the broader Solana market continues to expand, BONK may witness renewed momentum in the coming months.
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