Shares of Safety Shot, Inc. (NASDAQ:SHOT) are rising Wednesday after the company provided an update on its memecoin treasury strategy.
What To Know: Safety Shot announced that its subsidiary BONK Holdings has purchased 2.7% of the circulating supply of BONK, a dog-themed memecoin on the Solana blockchain. The company also set an ambitious goal to acquire 5% of BONK’s circulating supply by the end of the year.
Safety Shot said it recently received its first revenue share payment of $500,000 from its 10% interest in memecoin launchpad letsBONK.fun. The company expects to receive an additional payment of $650,000 within the next 27 days. The payments are being used to fund the company’s BONK accumulation strategy.
"We are using a non-dilutive, recurring revenue stream to aggressively accumulate what we believe is a deeply undervalued asset during a market downturn,” said BONK core contributor Mitchell Rudy. “The BONK ecosystem has historically seen its strongest performance in the fourth quarter, and we are strategically positioning our treasury to capitalize on that.”
Safety Shot said it would continue to use the proceeds from its stake in letsBONK.fun to acquire additional BONK tokens.
The company’s cash on hand, which does not include cryptocurrency, has dramatically dropped over the past four years, according to Benzinga Pro. Safety Shot reported having $467,000 in cash reserves during its last earnings call, a far cry from the $11 million it carried in 2021.
"Our strategy is executing exactly as planned," said Jarrett Boon, CEO of Safety Shot. "Receiving our first revenue share and immediately putting it to work demonstrates the power and efficiency of this accretive model. With a debt-free balance sheet and a clear plan, we have the flexibility to be opportunistic and build our treasury in a way that directly strengthens our balance sheet and benefits our investors."
SHOT Price Action: Shares of Safety Shot were up 10.9% at approximately 41 cents at the time of publication on Wednesday, according to Benzinga Pro.
Read Next:
- Bitcoin Rebounds Above $122,000--But For ETH, XRP That May Be Bad News
Image: Shutterstock
