Hyperliquid Strategies filed an S-1 registration with the U.S. Securities and Exchange Commission on Wednesday to raise up to $1 billion through a public offering of 160 million common shares.
The company stated that the funds will be allocated to acquire additional HYPE tokens for its treasury and to cover general corporate expenses. Chardan Capital Markets is serving as the financial advisor for the offering, providing guidance on the structure and timing of the fundraising initiative.
Merger and Future Structure
Hyperliquid Strategies is a planned merger entity formed by the Nasdaq-listed biotech firm Sonnet BioTherapeutics and the special purpose acquisition company Rorschach I LLC. The objective of this merger is to establish a firm focused on crypto asset management.
The merger, initially announced in July, is anticipated to conclude within the current year. Upon commencement of trading on Nasdaq, the entity will operate under a new ticker symbol. The combined company will be led by CEO David Schamis, with Bob Diamond, former chief executive of Barclays, assuming the role of chairman, as detailed in the SEC filing.
Token Holdings and Strategy
Upon completion of the merger, Hyperliquid Strategies is projected to possess 12.6 million HYPE tokens, valued at nearly $470 million. Additionally, the company will hold approximately $305 million in cash, which can also be utilized for further token acquisitions.
This substantial holding is expected to position the company as the largest corporate holder of HYPE tokens, according to available market data. In its filing, the company outlined its intention to "deploy its HYPE token holdings selectively, primarily through staking substantially all of its HYPE holdings." The filing also indicated potential exploration of other decentralized finance activities following internal reviews.
Market Reaction
Following the announcement of the news, the price of HYPE experienced a surge, reaching $39.02. This represents an 11% increase over the preceding 24 hours, moving from an intraday low of $34.81, as reported by CoinMarketCap.