- Safety Shot unveils BONK Holdings, acquiring 228.9 billion BONK tokens.
- SHOT shares experience a decline while BONK’s value surges by 8% in the last 24 hours.
- BONK’s charts suggest a potential breakout towards $0.0003620.
In a significant move into the cryptocurrency realm, Safety Shot has launched BONK Holdings LLC, a subsidiary dedicated to managing its portfolio in the booming Solana-based memecoin, BONK.
This initiative signifies a noteworthy shift as traditional companies explore digital assets, emphasizing their adaptability in the evolving cryptocurrency landscape.
Introducing BONK Holdings LLC
On September 11, Safety Shot announced its new subsidiary, BONK Holdings LLC, which will oversee the firm’s digital asset investments.
The company disclosed it has amassed a substantial 228.9 billion BONK tokens, representing over 2.5% of the memecoin’s circulating supply, and valued at around $55 million at current market rates.
Safety Shot’s average acquisition cost for these tokens is approximately $0.00002184, resulting from previous purchases and a recent $5 million collaboration with digital trading platform FalconX.
Rather than simply holding the tokens, Safety Shot aims to leverage its holdings within the Solana decentralized finance (DeFi) ecosystem, focusing on strategies such as staking, liquidity provision, and yield farming.
The company believes this initiative will yield non-dilutive returns, thereby bolstering its overall financial standing.
Jarrett Boon, the Chief Executive Officer, has articulated that BONK is perceived as a “top-tier digital asset” and stresses the importance of its integration within existing consumer brands.
After successfully raising $30 million in late August for growth initiatives, Safety Shot has also enlisted Mitchell Rudy, a co-founder of BONK, to join its board of directors.
Market Response: Safety Shot and BONK
Despite the ambitious direction outlined by the company, Safety Shot’s stock performance has lagged behind that of BONK.
Following the announcement, SHOT stock declined to $0.37, a low not seen in two months, before slightly recovering to close at $0.39. Pre-market trading has indicated only modest gains.
This decline highlights investor skepticism, particularly in light of the company’s substantial digital and cash holdings relative to its market capitalization of approximately $85.4 million.
Conversely, BONK has shown a strong upward trajectory, with an 8.3% increase in value, trading at $0.00002512 at the time of writing.
Although BONK’s price remains below the November 2024 peak of $0.00005825, it continues to outperform many of its peers in the Solana ecosystem since its inception.
Analyzing BONK’s Price Prospects
From a technical analysis standpoint, the BONK chart indicates potential for a bullish breakout.
Currently, the memecoin is trading within an ascending channel, with $0.0002377 serving as a robust support level.
An essential resistance level is set at $0.0002620; breaking through this could lead to a significant climb towards $0.0003620—representing an impressive potential upside of about 150% from current levels.
While volatility is a staple of BONK as a meme token, the company’s growing institutional participation signals a shift in narrative surrounding its legitimacy.
The proactive approach taken by Safety Shot to stake a substantial quantity of BONK tokens in DeFi platforms not only enhances liquidity but also solidifies the project’s standing in the market.
Should the broader Solana ecosystem continue its upward trend, BONK is poised for further growth in the coming months.
