– A Nasdaq-listed beverage company announced a $25M investment in BONK memecoin, triggering a 50% stock price drop.
– The firm cited BONK’s low-cost transactions and competitive edge over rivals like Shiba Inu as strategic advantages.
– Despite $15M in cash reserves and planned $35M in new financing, the market reacted negatively to the high-risk crypto allocation.
– This follows similar memecoin treasury strategies by entertainment firms, though the broader memecoin market has declined 25% year-to-date.
– Analysts warn the initiative’s success hinges on BONK’s volatile performance and shifting crypto market sentiment.