Sonnet to Merge With Rorschach, Form $888M Crypto Treasury Firm Hyperliquid Strategies

Sonnet and Rorschach are merging to form Hyperliquid Strategies, a $888M crypto treasury firm. The merger is expected to create a leading player in the crypto space. The news follows a tumultuous day on Wall Street, with futures wobbling on fresh tariff threats and equity futures lower pre-bell.

Sonnet BioTherapeutics, Inc. and Rorschach I LLC have announced a definitive agreement for a business combination, creating Hyperliquid Strategies Inc. (HSI). The new entity will focus on building a substantial reserve of HYPE tokens from the Hyperliquid Layer-1 blockchain, positioning itself as a leading player in the cryptocurrency treasury management space.

At the closing of the business combination, HSI will hold approximately 12.6 million HYPE tokens valued at $583 million, along with at least $305 million in cash. The total anticipated closing value is $888 million [1]. Key leadership roles will be filled by executives from Atlas Merchant Capital, with Bob Diamond serving as Chairman and David Schamis as Chief Executive Officer. Sonnet will continue to develop its biotech assets as a wholly owned subsidiary of HSI.

The business combination is backed by a group of prominent strategic investors, including Paradigm, Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital. The transaction is subject to Sonnet stockholder approval and is expected to close in the second half of 2025.

Sonnet plans to raise $5.5 million through a private placement to support its corporate and operational objectives. The funds will be used for general corporate purposes and operational costs, including the development of biotech assets. The private placement is expected to close on July 14, 2025 [1].

The merger comes amidst a tumultuous day on Wall Street, with futures wobbling on fresh tariff threats and equity futures lower pre-bell. Despite the market volatility, the business combination signals a strategic shift for Sonnet, leveraging its biotech assets and entering the cryptocurrency treasury management space.

References:
[1] https://www.quiverquant.com/news/Sonnet+BioTherapeutics+Announces+Business+Combination+with+Rorschach+to+Create+Hyperliquid+Strategies+Inc.+and+Establish+Crypto+Treasury+Management+Strategy