Hyperliquid Strategies is doubling down on its bet on the Hyperliquid ecosystem, filing with the U.S. Securities and Exchange Commission to raise up to $1 billion through a public offering aimed at expanding its treasury of HYPE tokens, the native asset powering the world’s largest decentralized derivatives platform.
According to the S-1 registration statement filed on Wednesday, the company plans to offer up to 160 million shares of common stock to fund further HYPE token purchases and support general corporate purposes.
Chardan Capital Markets is acting as the financial advisor for the offering.
Hyperliquid Strategies is a pending merger entity formed through the combination of Nasdaq-listed biotech firm Sonnet BioTherapeutics and special purpose acquisition company (SPAC) Rorschach I LLC, a move designed to transform the biotech firm into a crypto treasury vehicle focused on the Hyperliquid ecosystem.
The merger, announced in July, is expected to close later this year.
Upon completion, the merged company will trade on Nasdaq under a new ticker yet to be disclosed. It will be led by David Schamis as chief executive officer and Bob Diamond, former CEO of Barclays, as chairman.
In its filing, Hyperliquid Strategies revealed it currently holds 12.6 million HYPE tokens, valued at nearly $470 million, alongside $305 million in cash, both of which are earmarked for expanding its HYPE position.
The company plans to stake substantially all of its HYPE holdings, expecting to generate ongoing staking rewards, while also exploring non-staking DeFi activities within the Hyperliquid ecosystem.
The news of the filing appeared to boost market sentiment, with the HYPE token rallying nearly 8% to $37.73 over the past 24 hours, despite the broader crypto market dipping 0.6%, according to CoinGecko data.
If completed, the offering would cement Hyperliquid Strategies as the largest corporate holder of HYPE, marking a significant milestone in the convergence of traditional finance and decentralized markets.