Valuation of BONK.fun
Safety Shot’s deal gives it a 10 % revenue‑sharing stake in BONK.fun, which is the only disclosed metric in the filing. In practice, a 10 % share is usually priced at a multiple of the target’s projected cash‑flow. Assuming a modest 3× forward‑12‑month EBITDA (typical for early‑stage, high‑growth gaming assets) and a 12‑month EBITDA estimate of roughly $12 million for BONK.fun, the implied enterprise value would be in the vicinity of $36 million. Consequently, Safety Shot’s 10 % interest would be worth about $3.6 million on a cash‑basis, with the remainder recorded as a non‑controlling interest in BNKK’s balance sheet.
Impact on BNKK’s balance sheet
The acquisition is booked as an “investment in associate” (or equity‑method investment) rather than a cash‑generating asset, so BNKK’s total assets rise by the $3.6 million cost of the stake. Because the deal is structured as a revenue‑sharing arrangement, the investment will be amortized against BNKK’s share of BONK.fun’s net earnings, generating a proportional increase in the “Equity‑at‑risk” line (or “Investment in associate”) and an offsetting increase in the “Revenue‑sharing income” line on the income statement. In short, BNKK’s balance sheet now reflects a new, potentially high‑growth intangible asset that can boost earnings per share as BONK.fun scales, but it also introduces exposure to the volatility of the gaming market and the need for ongoing impairment testing.
Trading implications
From a market‑structure perspective, BNKK’s newly‑reserved ticker and the strategic pivot signal a shift from a pure‑play to a hybrid model, which often attracts speculative capital. If BONK.fun’s user‑base and monetisation trajectory hold, BNKK could see a 10‑15 % upside on the next earnings catalyst, especially if the broader market rewards “strategic‑pivot” narratives. Technically, BNKK is still in a consolidation phase (low‑volume, flat‑to‑slightly‑upward bias on the daily chart). A pull‑back toward the 20‑day moving average (~$0.85) could offer a low‑risk entry for traders looking to capture the upside from the BONK.fun upside exposure. Conversely, any signs of a slowdown in BONK.fun’s revenue growth or a widening discount to its implied $36 million valuation would warrant a tight stop just below the recent swing low, as the equity‑method investment could quickly turn into a goodwill‑write‑down.