Nasdaq-listed Safety Shot saw its stock dip after establishing a new subsidiary dedicated to its digital asset strategy, focused on the Bonk (BONK) meme coin.
Alongside the announcement, the company disclosed an expansion of its BONK treasury. Notably, it now holds more than 2.5% of the token’s circulating supply.
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Safety Shot Creates BONK Subsidiary, Stock Slides
In a press release dated September 11, the firm, with a market cap of $85.4 million, disclosed the formation of BONK Holdings LLC. This new subsidiary will manage the firm’s digital asset strategy.
The subsidiary has expanded its reserves through prior initiatives and a recent $5 million acquisition in collaboration with FalconX, a prominent digital asset trading platform.
According to the company, BONK Holdings has acquired 228.9 billion BONK tokens. The average purchase price was $0.00002184 per token. This acquisition has elevated Safety Shot’s holdings to over 2.5% of BONK’s total circulating supply, valued at approximately $55 million based on current market prices.
Notably, the firm isn’t just keeping its BONK tokens in storage. Instead, it plans to put them to work within Solana’s DeFi ecosystem—staking, adding liquidity, and yield farming.
The approach aims to generate additional, non-dilutive returns. This, in turn, will strengthen the company’s finances and support future growth.
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The announcement follows a series of strategic moves by Safety Shot to align itself with the BONK ecosystem. The company secured a $30 million investment in late August, signaling its intent to integrate the cryptocurrency into its broader business strategy.
Earlier this month, Safety Shot further solidified its commitment by appointing Mitchell Rudy, a core founder of BONK, to its Board of Directors.
Nonetheless, the firm’s BONK subsidiary formation has not fueled investor confidence. According to Google Finance, Safety Shot’s stock (SHOT) fell to $0.37 yesterday, its lowest level in two months.
The stock ended the session slightly higher at $0.39, down 0.74% on the day. However, in pre-market trading, SHOT recorded a small uptick of 0.10%.
Meanwhile, BONK has continued to trend higher this month. BeInCrypto Markets data showed that over the past week, the meme coin has seen a 26.4% uptick in value.
BONK Meme Coin Price Performance. Source: BeInCrypto MarketsAt the time of writing, BONK traded at $0.0000250, up 7% over the past 24 hours.
Source: https://beincrypto.com/safety-shot-expands-bonk-holdings-stock-dips/
