- Sonnet BioTherapeutics is merging with Rorschach I LLC to form Hyperliquid Strategies Inc.
- The merger brings a digital asset treasury holding about $583 million in HYPE tokens.
- HYPE token rose nearly 7% despite a decline in the broader crypto market.
- The new company secured a $1 billion facility for potential additional HYPE token purchases.
- The deal signals growing institutional interest and long-term demand for HYPE tokens.
The Nasdaq-listed biotech company Sonnet BioTherapeutics is merging with the private firm Rorschach I LLC to establish Hyperliquid Strategies Inc. The move was announced in an official filing dated October 22 and aims to pivot Sonnet’s business towards digital assets.
As part of the merger, the new entity will launch with a digital asset treasury containing approximately $583 million worth of HYPE tokens. Additionally, it has secured a $1 billion facility that could be used for further purchases of HYPE tokens, which are linked to decentralized exchange Hyperliquid.
The HYPE token gained nearly 7% within 24 hours, outperforming competitors like BNB Chain’s Aster, which dropped 7.6%, according to CoinGecko data. This boost is seen as a response to the large capital inflow and institutional positioning from the new company’s treasury.
Shivam Thakral, CEO of BuyUCoin, described the merger as a strong positive for HYPE, stating, “HSI’s move sends a strong bullish signal for HYPE, benefiting from added demand, scarcity, and institutional recognition.” The digital asset treasury (DAT) represents a significant institutional buyer, often associated with longer holding periods compared to retail investors.
The filing also noted risks, including increased regulatory oversight due to share offerings and significant dilution for Sonnet shareholders, who will retain only 1.2% of the new company. Meanwhile, other crypto assets like BNB’s Aster have been declining since reaching a recent peak, with Aster losing 67% of its value from the October 6 high.
User sentiment reflected in prediction markets shows declining confidence for assets like Aster, which now has only a 2% chance of reaching $4 by November, down from 37% a month ago. In contrast, HYPE’s performance stands out amid these shifting market dynamics.
For more information, the full filing and related Binance.com/en/trade/ASTER_USDT?type=spot”>Binance data are available.
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