This Penny Stock Is Betting Big on Meme Crypto BONK. Should You Buy SHOT Shares Here?

Safety Shot (SHOT) has made a bold move into cryptocurrency by allocating $25 million to BONK (BONK), the fifth-largest memecoin with a market cap of over $2 billion. Last week, the Nasdaq-listed company the creation of a corporate BONK treasury, receiving $25 million in tokens through a strategic alliance with BONK founding contributors, while issuing $35 million in convertible preferred shares as consideration.

This positions Safety Shot among an increasing number of companies adopting altcoin treasury strategies beyond Bitcoin (BTCUSD). Recent corporate moves include Bit Origin (BTOG) arranging $500 million for Dogecoin (DOGEUSD) accumulation and SharpLink Gaming (SBET) disclosing nearly 600,000 in Ethereum (ETHUSD) holdings. Safety Shot CEO Jarrett Boon called it "the first stage of a much broader corporate evolution for our company" and a bold step into digital assets.

Safety Shot chose BONK for its Solana (SOLUSD) blockchain foundation, citing high-speed, low-cost transaction capabilities that provide advantages over Ethereum-based competitors like Shiba Inu (SHIBUSD) and Pepe (PEPE), which wrestle with network congestion and elevated fees.

Notably, Safety Shot's core business focuses on beverages designed to reduce blood alcohol content, generating revenue through direct-to-consumer sales and retail partnerships. While the company has over $15 million in cash reserves, this crypto pivot represents a dramatic shift from its healthcare-focused mission. Though corporate crypto adoption is accelerating, investors should carefully consider whether this speculative bet aligns with their risk tolerance before purchasing SHOT shares.

Is SHOT Stock a Good Buy Right Now?

Safety Shot presents substantial risks for potential investors, even as recent clinical trials showed significant blood alcohol content (BAC) reduction. As of June 2025, Safety Shot held just $466,791 in cash with negative working capital of $3.0 million, raising substantial doubt about its ability to continue as a going concern. This financial distress follows years of mounting research and development expenses, including $1.6 million in 2023 alone, while generating minimal revenue since launching its Sure Shot supplement in December 2023.

The regulatory landscape poses additional risks. While Safety Shot's 28 ingredients are generally regarded as safe (GRAS), the FDA does not pre-approve dietary supplements, creating regulatory uncertainties. The company operates in a highly regulated space, where claims about alcohol metabolism could attract scrutiny from health authorities.

Moreover, market acceptance remains questionable. Despite clinical trials involving 36 participants showing BAC reduction within 30 minutes, the study revealed notable adverse events, including nausea and rash development. Safety Shot’s informal pre-clinical testing with "friends, family and volunteers" lacks scientific rigor compared to peer-reviewed studies.

Safety Shot's recent $25 million BONK cryptocurrency allocation adds speculative risk unrelated to its core beverage business. This volatile investment could further strain already limited resources.

The company's transformation from Jupiter Wellness to Safety Shot, combined with the June 2025 Yerbaé acquisition, suggests management is still searching for a viable business model. With only eight full-time employees and dependence on e-commerce and retail partnerships, Safety Shot faces execution risks in scaling operations while managing mounting losses.