Sonnet BioTherapeutics Unveils $888M Merger Deal to Launch Hyperliquid (HYPE) Treasury

Nasdaq-listed Sonnet BioTherapeutics has announced an $888 million merger with Rorschach I LLC to launch a Hyperliquid (HYPE) digital asset treasury.

Rorschach is a newly formed company by an entity backed by Atlas Merchant Capital LLC, an affiliate of Paradigm Operations LP, and other notable sponsors.

Sonnet to Launch HYPE Treasury

According to the press release, this strategic move will focus on building a reserve for HYPE, the native token of the Hyperliquid blockchain. The new business entity will be called Hyperliquid Strategies Inc. (HSI). It is expected to become the largest publicly listed company holding the asset on its balance sheet.

The company aimed to hold 12.6 million HYPE, valued at approximately $583 million at the time of signing. It also planned to maintain $305 million in cash, resulting in a combined valuation of $888 million.

Furthermore, prominent investors like Paradigm, Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital participated in this deal. By creating HSI, Sonnet is taking inspiration from Strategy, the business intelligence firm-turned Bitcoin investor. Investors will have the opportunity to gain indirect exposure to HYPE through equity markets, bridging traditional finance with blockchain technology.

Funding Crypto Pivot

Additionally. Sonnet shared that it will raise $5.5 million through a private placement to accredited investors. This offering will include warrants to purchase shares of Sonnet’s common stock, further expanding its financing strategy.

At the closing of the transaction, Bob Diamond, Atlas co-founder and CEO, will become Chairman of Hyperliquid Strategies. At the same time, David Schamis, Atlas’s co‑founder and CIO, will be appointed CEO of HSI. Commenting on the initiative, Bob Diamond stated:

“We are delighted by this opportunity to partner with Sonnet in establishing a leading crypto treasury management strategy to ultimately deliver strong value to shareholders. We believe HYPE and the Hyperliquid protocol represent a truly differentiated offering within the digital asset space. We believe Hyperliquid Strategies will be well placed to maximize these opportunities because of our unique team of investors and operators with deep, relevant crypto and financial services experience.”

Meanwhile, Hyperliquid is a high-throughput layer-1 blockchain that supports on-chain trading of perpetual futures and other financial primitives. The platform has generated more than $1.5 trillion in perps volume over the past year.

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