Hyperliquid Strategies Seeks $1B to Boost HYPE Token Treasury

Hyperliquid Strategies is raising up to $1 billion to purchase the Hyperliquid token HYPE. The company is planning on creating a treasury and increasing the corporate interest in the token. According to the S-1 Filing of the company with the U.S. Securities and Exchange Commission, Hyperliquid Strategies plans on offering over 160 million shares of the common stock to finance additional HYPE acquisitions and cover general corporate expenses. Chardan Capital Markets will serve as the financial advisor for the offering.

The firm is a pending merger entity between Sonnet BioTherapeutics, a Nasdaq-listed biotech company, and Rorschach I LLC, a special purpose acquisition company (SPAC). Once finalized, the merged company will be led by David Schamis as CEO, with Bob Diamond, former Barclays CEO, serving as chairman.

The announcement triggered an immediate market reaction, with HYPE tokens surging 8% to $37.73, even as the broader crypto market slipped 0.6%, according to CoinGecko.

Upon completion of the merger, Hyperliquid Strategies is expected to hold 12.6 million HYPE tokens, valued at roughly $470 million, alongside $305 million in cash funds also earmarked for further token accumulation. This would make the firm the largest corporate holder of HYPE, according to CoinGecko data.

The move is in line with an increasing trend of businesses using debt and equity instruments to amass cryptocurrency holdings. Analysts caution that although these tactics frequently raise stock values in the near term, it is still unclear if they will be sustainable over the long run.

HYPE’s momentum comes amid a record-breaking surge in decentralized perpetuals (perps) trading. Data from DeFiLlama shows that in just the first 23 days of October, decentralized perp volumes surpassed $1 trillion, shattering September’s $772 billion record. On October 10, daily trading volume peaked at $78 billion.

Hyperliquid continues to dominate the sector with $317.6 billion in October trading volume, ahead of rivals Lighter ($255.4B), Aster ($177.6B), and edgeX ($60.6B), further reinforcing its leadership in the DeFi derivatives landscape.