Sonnet BioTherapeutics, a publicly listed biotech firm, has announced a definitive merger agreement with Rorschach I LLC, a newly formed entity backed by Atlas Merchant Capital and other crypto-focused investors, including Paradigm Ventures.
According to a July 14 statement, the merged company will adopt a new name, Hyperliquid Strategies, Inc. (HSI), and shift its focus to building a significant crypto treasury anchored by the HYPE token.
HYPE treasury reserve
Once the deal closes, HSI will hold approximately 12.6 million HYPE tokens, currently valued at around $583 million, and at least $305 million in fresh capital. Based on these figures, the newly formed entity is projected to launch with a combined value of nearly $888 million.
The transaction has attracted strategic participation from major names in the digital asset space, including Paradigm, Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital.
The HSI entity is expected to continue trading on the Nasdaq Capital Market under a new ticker. Once finalized, this transition will position HSI as one of the several crypto-native treasury companies.
Due to this, the HSI leadership team will see significant changes. Bob Diamond, Atlas’s Co-founder and CEO, will step in as Chairman of the Board, and David Schamis, Atlas’s CIO and Co-founder, will take over as CEO.
Further appointments will include a new Chief Financial Officer, and former Boston Federal Reserve President Eric Rosengren will join the board. These changes are expected to enhance HSI’s strategic direction as it expands its operations in the crypto sector.
Hyperliquid’s growing influence
The merger reflects growing institutional interest in Hyperliquid’s HYPE token, which currently holds the 11th spot by market capitalization in the crypto space.
This interest is also reflected in recent moves by other companies, such as Lion Group Holding Ltd. and Eyenovia Inc., which have begun integrating HYPE into their treasury strategies.
The public firm’s interest is unsurprising considering Hyperliquid is a fast-growing decentralized exchange that has captured over 80% of the on-chain perpetual futures market, according to DeFiLlama’s data.
Considering this, Matt Huang, co-founder of Paradigm, said the crypto protocol has “real fundamentals: strong core contributors, exacting product quality, and meteoric growth.” He noted that institutional demand for HYPE exposure remains high, and this structure could help address accessibility gaps in the US market.
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