Hyperliquid Strategies Inc. to Hold $583 Million in HYPE Tokens Post Merger

Hyperliquid Strategies Inc. (HSI), a newly formed entity resulting from the merger between Sonnet BioTherapeutics Holdings and Rorschach I LLC, is set to hold a substantial amount of HYPE tokens. The company will control approximately $583 million worth of HYPE tokens, which amounts to around 12.6 million tokens at current market prices. This merger not only transforms Sonnet into Hyperliquid Strategies Inc., a public crypto treasury firm, but also positions it as the largest U.S.-listed company with direct exposure to HYPE tokens.

The deal involves $305 million in fresh capital, in addition to the $583 million in HYPE tokens, totaling $888 million in assets. This strategic move underscores the growing trend of companies integrating cryptocurrencies into their treasury strategies, reflecting a broader shift in the financial landscape towards digital assets. The merger is expected to enhance Hyperliquid Strategies' position in the market, leveraging the potential of HYPE tokens to drive future growth and innovation.

Under the terms of the merger, Sonnet BioTherapeutics will become a wholly owned subsidiary of Hyperliquid Strategies. The biotechnology firm is expected to continue managing its current oncology pipeline while it operates under the new corporate structure. The transaction involves Sonnet’s business combination with Rorschach I, which is an entity that was created specifically to execute this treasury strategy centered around the HYPE token. The new structure allows HSI to leverage its public company status to build a substantial HYPE reserve, which integrates elements of traditional finance with decentralized token economics.

The formation of Hyperliquid Strategies is supported by multiple major investment firms. The backers include Atlas Merchant Capital, Paradigm, Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital. These firms are part of the funding round that supports the transition and the strategic direction of the new company. Paradigm co-founder Matt Huang stated that the HYPE token has strong fundamentals and noted there is increasing institutional interest in crypto assets that are not easily accessible to U.S. investors. He added that the creation of HSI provides a structured way for traditional investors to gain that exposure through the public equity market.

This move allows HSI to provide equity investors with indirect exposure to the HYPE token through traditional, regulated financial markets. The company will maintain its listing on the Nasdaq under a new ticker, which has not yet been disclosed. The newly created company aims to become the largest U.S.-listed public company with direct HYPE token holdings on its balance sheet. This strategic move underscores the growing trend of companies integrating cryptocurrencies into their treasury strategies, reflecting a broader shift in the financial landscape towards digital assets. The merger is expected to enhance Hyperliquid Strategies' position in the market, leveraging the potential of HYPE tokens to drive future growth and innovation.