When a beverage company decides to exchange equity for BONK dividends

2025-09-01 22:54:59

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Safety Shot and Bonk are playing a very new cooperative relationship.

Author: Yanz, Deep Tide TechFlow

On August 11, 2025, Safety Shot, Inc. (NASDAQ: SHOT), a beverage company, announced a groundbreaking strategic alliance with the founding contributors of BONK, deeply integrating the company with the BONK ecosystem.

Through a private placement, the Bonk founding team provided a value of $25 million, approximately 770 trillion Bonk tokens, while Safety Shot issued $35 million worth of convertible preferred stock (convertible into common stock of the company). With this approach, Safety Shot aims to transform from a traditional beverage company into a business that integrates DeFi (decentralized finance), but it also brings the risk of diluting existing shareholder equity.

This collaboration initially seemed like just another repeated attempt by a public company to transform into a crypto reserve company, and the market reacted negatively, with Safety Shot's stock price quickly halving, plummeting by 55%.

However, the reality is more complex; Safety Shot and Bonk are engaging in a very new type of partnership.

On August 12, Safety Shot further disclosed that it had acquired a 10% revenue-sharing interest in the core platform of the Bonk ecosystem, letsBONK.fun (BonkFun), and appointed core members of the Bonk founding team (such as Mitchell Rudy) to the board, holding 50% of the board seats. Rudy will also strategically guide the accumulation of $BONK and provide advice for on-chain operations. The company has also reserved the Nasdaq stock code "BNKK" for future strategic adjustments.

It appears that the collaboration between these two companies has transcended the traditional corporate strategy of "piggybacking" on buying tokens to enrich asset allocation.

Safety Shot will receive 10% of the revenue from BONK.fun and has committed to using 90% of the profits to repurchase BONK tokens, depositing them into the company treasury. This will create a buying demand for BONK, supporting its value growth. Meanwhile, BONK.fun itself will also use part of its revenue to repurchase and burn BONK tokens in the open market, further reducing supply and enhancing value.

Unlike other announced cryptocurrency reserve strategies, Safety Shot will generate revenue by participating in letsBONK.fun, rather than just earning income from token trading.

Rudy stated, "Staking yields are relatively stable but limited and always subject to the price of the underlying token. Revenue sharing offers unlimited exponential growth potential that is closely tied to the success of market-leading companies. This is a bet on the growth of the entire industry, not just a single asset. For investors in Safety Shot, this means the company's value is linked to real, high-profit cash flows, which is much stronger and more exciting than merely holding tokens and hoping for their appreciation."

The impact of the collaboration on Safety Shot

This is seen as the first public company in Nasdaq history to "share revenue with a meme coin" in this way, and it will also share profits with token holders, as the revenue ultimately flows into the BONK ecosystem, supporting the holders.

Safety Shot CEO Jarrett Boon stated, "This strategic partnership represents the first step in a broader corporate transformation for our company. By collaborating with one of the most exciting ecosystems in the digital asset space, we are taking a bold first step."

Interestingly, the investment advisor behind this bold collaboration, Dominari Securities, is not an unknown entity but a holding company associated with the Trump family, with its parent company Dominari Holdings, Inc. (NASDAQ: DOMH) headquartered in Trump Tower.

As early as February 11, 2025, Dominari Holdings announced that Trump brothers Donald Trump Jr. and Eric Trump joined its advisory board, each investing approximately $1 million through private placements. FactSet data shows that the Trump sons hold 6.7% of the company, each worth over $6 million.

To date, this company has become the preferred advisor for several transactions involving the Trump family, including projects in crypto, data centers, and manufacturing. Dominari Holdings President Kyle Wool praised the advisory board, particularly Eric Trump, for helping a subsidiary secure a Bitcoin mining partnership, namely the collaboration between American Data Centers and Hut 8.

Returning to the somewhat crazy and unsafe collaboration between Bonk and Safety Shot, the association with Dominari and the Trump family makes it part of the Trump business network, adding some risk factors even though the Trump brothers are not directly involved.

This "Trump halo" has attracted widespread attention to Safety Shot and Bonk, further amplifying interest in both the crypto and traditional financial markets, but it has also raised concerns among investors about the speculative risks associated with the Trump connection.

As of September 1, the SHOT stock price remains unpromising, still reflecting the fatigue following the announcement, and the future direction of the collaboration remains to be seen.