Key Highlights
- Safety Shot has hired Monarq Asset Management to professionally manage its holdings of over $50 million in BONK memecoin
- The partnership is expected to actively generate revenue and yield from the crypto holdings using advanced trading algorithms and DeFi protocols
On September 25, Safety Shot Partners announced its strategic partnership with Monarq Asset Management.
A publicly-traded beverage company has partnered with an investment firm to professionally manage its substantial holdings in BONK, a popular memecoin.
Safety Shot Partners with Monarq Asset Management
Safety Shot, a company known for its wellness beverages, announced on September 25 that it has entered into a partnership with Monarq Asset Management to oversee its BONK token holdings valued at over $50 million.
The partnership is expected to transform the company’s cryptocurrency assets from passive investments into actively managed sources of revenue. This will be achieved by sophisticated trading strategies and yield-generating activities.
The company’s BONK holdings now represent more than half of Safety Shot’s total market value of approximately $45 million. This highlights the significant role digital assets have come to play in the company’s financial strategy.
This substantial allocation to cryptocurrency shows a dramatic change for a company traditionally focused on consumer beverages. It reflects the growing acceptance of digital assets in corporate treasury management.
Under the agreement, Monarq Asset Management will use quantitative trading strategies to actively manage Safety Shot’s BONK portfolio. This includes algorithmic trading, liquidity optimization, and participation in decentralized finance (DeFi) protocols to generate yield.
The investment firm will also implement risk management strategies to protect against market downturns, using hedging techniques common in traditional finance but adapted for the cryptocurrency markets.
Safety Shot’s CEO Jarrett Boon stated that “Partnering with a firm of Monarq’s caliber is a pivotal step in our evolution. This isn’t a passive treasury strategy; we are actively putting our digital assets to work to generate significant returns and protect shareholder value. Monarq’s expertise in quantitative trading and derivatives will allow us to monetize our BONK holdings in a sophisticated manner, with the goal of creating a self-funding engine for our growth.”
The company began accumulating BONK tokens earlier this year, with major purchases in August and September bringing its total holdings to 228.9 billion tokens. These acquisitions were conducted through over-the-counter trades to minimize market impact.
BONK operates on the Solana blockchain, which offers faster transaction speeds and lower costs compared to some other blockchain networks.
Safety Shot has also reconfigured its board of directors to include members with cryptocurrency expertise, including a core contributor to the BONK project. This governance change shows that the company is serious about its commitment to its digital asset strategy.
The partnership takes place amid growing corporate interest in memecoins, which began as internet jokes but have evolved into substantial digital assets with active communities and developing use cases.
Companies Are Acquiring Memecoins As Part Of Their Treasury Assets
Several other publicly-traded companies have recently announced allocations to memecoins like Dogecoin and BONK. This follows the latest trend set by companies that adopted corporate Bitcoin investments.
This trend shows recent developments in the cryptocurrency space, where traditional companies are increasingly exploring digital assets as components of treasury management strategies.
The ability to generate yield through staking and DeFi protocols provides an additional incentive compared to traditional investments, particularly in low-interest environments.
Surprisingly, Safety Shot’s stock price declined substantially after its initial cryptocurrency announcements. This reflects investor concerns about the potential risks involved. The company’s regulatory filings acknowledge dependencies on token performance and potential integration challenges.
Mitchell Rudy (a.k.a. Nom), a BONK core contributor, stated in a press release, “Bringing in a top-tier firm like Monarq Asset Management is a critical step in professionalizing our treasury and executing our vision at the highest level. Their deep expertise in quantitative strategies and risk management is exactly what we need to actively monetize our BONK holdings, generate sustainable yield, and protect our balance sheet.”
“This isn’t just about holding an asset; it’s about making that asset productive for our shareholders. Partnering with Monarq ensures we have the institutional-grade horsepower to do just that,” he added further.