Memecoins in corporate treasury? Safety Shot takes $25M BONK bet

Key Points

1. Safety Shot received $25 million in BONK in exchange for issuing $35 million in preferred shares, despite having over $15 million in cash reserves.

2. Corporate crypto treasuries typically hold established, liquid tokens like Bitcoin and Ethereum, making Safety Shot's BONK investment a riskier move due to higher volatility and liquidity constraints.

3. BONK is a mid-tier memecoin with a $1.94 billion market cap, competing against larger players like Dogecoin ($33B) and Shiba Inu, in a highly volatile market.

4. Memecoins can offer brand exposure and engagement but come with significant price swings, raising questions about their suitability for corporate balance sheets.