TLDR
- Safety Shot expands its BONK holdings to $63M through the creation of BONK Holdings LLC.
- BONK represents 2.5% of Safety Shot’s total portfolio, reflecting corporate interest in digital assets.
- Safety Shot invests $5M more in BONK tokens, signaling further commitment to the memecoin.
- BONK Holdings LLC will oversee Safety Shot’s digital assets and crypto treasury management strategy.
Safety Shot, a Nasdaq-listed company, has established BONK Holdings LLC to manage its growing digital asset strategy. This new subsidiary will play a crucial role in overseeing Safety Shot’s investment in BONK tokens, a memecoin that the company believes holds significant potential in the growing cryptocurrency market.
To further expand its crypto holdings, Safety Shot recently added $5 million worth of BONK tokens to its treasury, increasing the total value of its BONK holdings to over $63 million. As a result, BONK now represents approximately 2.5% of the total circulating supply of this popular meme coin. The company’s move underscores its ongoing efforts to diversify its portfolio by incorporating digital assets.
Formation of BONK Holdings LLC
The creation of BONK Holdings LLC reflects Safety Shot’s long-term commitment to expanding its presence in cryptocurrency and digital asset management. The subsidiary will manage Safety Shot’s crypto holdings, which now include a significant portion of the BONK token supply.
The company’s goal is to integrate digital assets into its broader business strategy, ensuring the company benefits from the growing interest in the cryptocurrency market.
Jarrett Boon, CEO of Safety Shot, emphasized the company’s aggressive approach to accumulating BONK tokens. He noted that Safety Shot’s digital and cash assets were already valued above the company’s current market capitalization, highlighting the unrecognized value within its brands, such as Sure Shot and Yerbaé. The BONK Holdings LLC formation indicates Safety Shot’s increasing confidence in cryptocurrency as a crucial part of its growth strategy.
Diversifying Assets with Memecoins
Safety Shot’s move to invest in BONK tokens signals a broader trend of corporate investment in digital assets and cryptocurrencies. The memecoin market has garnered significant attention from both retail and institutional investors in recent years.
As more companies begin to recognize the value of crypto assets, companies like Safety Shot are following suit by allocating a portion of their treasuries to cryptocurrency holdings.
By positioning itself within the memecoin sector, Safety Shot seeks to generate non-dilutive returns through staking, liquidity provision, and yield farming within Solana’s DeFi ecosystem. These strategies will help bolster the company’s finances, providing additional revenue streams to support future expansion.
Stock Performance and Market Sentiment
Despite the positive strides in expanding its digital asset holdings, Safety Shot has faced challenges in gaining investor confidence. Following the launch of BONK Holdings LLC, Safety Shot’s stock (SHOT) dropped to its lowest level in two months.
On September 11, the stock fell to $0.37 before closing slightly higher at $0.39, marking a 0.74% decline on the day.
However, BONK has been performing well in the market. Over the past week, the token has seen a 26.4% increase in value, reflecting strong market sentiment surrounding memecoins. At the time of writing, BONK is trading at $0.0000250, showing a 7% rise in the last 24 hours.
