Biotech firm on Nasdaq declares strategic shift, investing a staggering $888M in HYPE Token, marking a significant leap into the crypto realm through a daring Treasury commitment.
In a significant corporate shift, Sonnet BioTherapeutics has announced its transformation from an oncology biotech company to a leading cryptocurrency treasury firm. This transformation is set to take place through a merger with Rorschach I LLC, forming Hyperliquid Strategies Inc. (HSI), a new public entity.
The merger will see Sonnet BioTherapeutics holding approximately 12.6 million HYPE tokens, valued at around $583 million, and receiving $305 million in cash. This move positions HSI as the largest U.S.-listed company with direct exposure to HYPE tokens, a cryptocurrency that currently ranks as the 13th-largest by market capitalization.
The merger is backed by major crypto investors such as Paradigm, Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital, demonstrating the industry's confidence in the new direction. Matt Huang, Co-founder of Paradigm, has praised Hyperliquid for its strong fundamentals, citing high product quality, a rapidly growing community, technical capabilities that rival Ethereum, and the scarcity of HYPE tokens.
The new entity, HSI, will serve as a bridge between traditional finance and decentralized token economics, managing and holding the massive HYPE token reserve. It will also act as a proxy for investors wanting exposure to HYPE tokens via traditional equity markets, addressing accessibility challenges and providing regulatory oversight.
Sonnet BioTherapeutics' original biotech operations will continue under HSI as a wholly owned subsidiary. Legacy shareholders will receive contingent value rights tied to these biotech assets. Notable figures joining the HSI board include Bob Diamond (former Barclays CEO), Eric Rosengren (former Boston Fed President), and two independent directors from Sonnet.
The merger aims to make HSI a pioneering public crypto treasury firm with significant financial and market influence. The team plans to turn HSI into a leading model for crypto-native treasury management in the public markets.
[1] Hyperliquid Strategies Inc. Press Release, "Sonnet BioTherapeutics to Merge with Rorschach I LLC to Form Hyperliquid Strategies Inc.," 2023. [2] CoinMarketCap, "HYPE (HYPE)," 2023. [3] Bloomberg, "Sonnet BioTherapeutics Raises $5.5 Million in Private Placement," 2023.
- Hyperliquid Strategies Inc. (HSI), as a result of the merger with Sonnet BioTherapeutics and Rorschach I LLC, will hold around 12.6 million HYPE tokens, valued at approximately $583 million, and receive $305 million in cash.
- HSI will be the largest U.S.-listed company with direct exposure to HYPE tokens, a cryptocurrency currently ranking as the 13th-largest by market capitalization.
- Key investments in HSI come from major crypto players like Paradigm, Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital, reflecting industry confidence in the new direction.
- Matt Huang, Co-founder of Paradigm, commends Hyperliquid for its strong fundamentals, including high product quality, a growing community, technical capabilities comparable to Ethereum, and scarce HYPE tokens.
- HSI will function as a bridge between traditional finance and decentralized token economics, managing and holding the vast HYPE token reserve while serving as a proxy for investors interested in HYPE tokens through traditional equity markets.
- The merger positions HSI as a leading public crypto treasury firm with financial and market influence, aiming to become a model for crypto-native treasury management in the public markets.
- Sonnet BioTherapeutics' original biotech operations will carry on under HSI as a wholly owned subsidiary, with legacy shareholders receiving contingent value rights tied to these biotech assets.
- Notable additions to the HSI board include Bob Diamond (former Barclays CEO), Eric Rosengren (former Boston Fed President), and two independent directors from Sonnet, further bolstering the company's business and technology expertise in the finance and crypto sectors.
