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Sonnet BioTherapeutics (Nasdaq: SONN) has announced a transformative merger that will see it rebranded as Hyperliquid Strategies, Inc., pivoting into the digital asset space with a major focus on HYPE, the native token of the decentralized exchange Hyperliquid. The $888 million deal includes a sizable reserve of HYPE tokens and cash, positioning the new entity as a top crypto treasury management firm.
Hyperliquid Strategies to Hold $888M in Assets
The merger, revealed Monday, brings Sonnet together with Rorschach I LLC, a firm newly formed by entities affiliated with Atlas Merchant Capital, Paradigm Operations, and other strategic sponsors. Upon completion, the new entity will carry the name Hyperliquid Strategies, Inc., and is expected to hold 12.6 million HYPE tokens along with $305 million in cash, totaling an estimated $888 million in assets.
The company will remain publicly listed on the Nasdaq but is expected to trade under a new ticker symbol reflecting its digital asset focus.
Strategic Investors Join the Crypto Treasury Pivot
The deal has attracted major players in both traditional and crypto finance. Key investors include:
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Paradigm
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Galaxy Digital
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Pantera Capital
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D1 Capital
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Republic Digital
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683 Capital
These firms are backing Hyperliquid Strategies’ bold vision: creating a crypto-native treasury platform built on real fundamentals, deep liquidity, and governance transparency.
Matt Huang, co-founder of Paradigm, noted the significance of the move:
“Hyperliquid has broken out as a crypto project with real fundamentals: strong core contributors, exacting product quality, and meteoric growth.”
He emphasized that institutional interest in HYPE has been growing rapidly, especially since access to the token remains limited in the U.S. markets.
Proceeds Will Be Used to Expand HYPE Holdings
The $305 million in cash included in the deal is earmarked for acquiring additional HYPE tokens, which would give Hyperliquid Strategies one of the largest strategic reserves of the token in the market.
Hyperliquid, the decentralized exchange powering the HYPE token, has seen over $1.5 trillion in perpetuals volume in the past year. Recently, it achieved a record $11.3 billion in open interest, signaling strong market engagement and institutional activity.
This makes HYPE one of the most sought-after tokens in the current DeFi ecosystem, despite being relatively hard to access in U.S. markets due to regulatory hurdles.
Leadership and Structure of the New Entity
As part of the merger agreement, leadership of Hyperliquid Strategies will include:
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Bob Diamond, co-founder of Atlas, as Chairman
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David Schamis, co-founder of Atlas, as CEO
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Eric Rosengren, former Boston Fed President, joining the board
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Two independent directors from Sonnet BioTherapeutics
The new leadership team brings a mix of financial services experience, regulatory insight, and blockchain industry knowledge, which may give Hyperliquid Strategies a strong competitive edge in navigating the evolving crypto market landscape.
A Strategic Pivot from Biotech to Crypto
Sonnet BioTherapeutics, originally a biotechnology company focused on oncology and biologics, will become a wholly owned subsidiary under the new Hyperliquid Strategies umbrella. While Sonnet will retain control of its existing biotech assets, shareholders will receive a Contingent Value Right (CVR) — a legal entitlement to future payouts if its biotech pipeline generates any value through licensing, sales, or partnerships.
This move allows Sonnet to preserve its scientific IP while the parent company pivots toward a crypto-centric business model.
Market Reaction and Outlook
The announcement sent Sonnet BioTherapeutics shares surging nearly 300% in pre-market trading, raising its market capitalization to just over $16 million—a figure expected to rise further as the merger progresses.
The Hyperliquid Strategies pivot represents a new breed of crypto treasury firms, structured like traditional financial entities but with deep exposure to decentralized markets. With an initial treasury value approaching $900 million, backed by top-tier crypto investors and public market access, the firm is positioned as a gateway for institutional HYPE exposure.
Final Thoughts: A Bold Play in the Crypto Treasury Race
This merger marks a significant evolution in how traditional companies enter the crypto space. Rather than creating a token or launching a DeFi protocol, Sonnet is transforming into a crypto treasury powerhouse, holding large quantities of HYPE, a token tied to one of the fastest-growing decentralized exchanges in the space.
With institutional barriers to HYPE access still in place, Hyperliquid Strategies could offer a public-market alternative for exposure to this high-performing digital asset. Investors will be watching closely as the company finalizes the deal and unveils its Nasdaq rebrand.
