Hyperliquid Strategies is advancing its plans for a robust treasury by submitting a proposal to raise up to $1 billion through a stock offering. This initiative aims to bolster its holdings in HYPE tokens and cover other corporate expenditures.
According to a recent filing with the US Securities and Exchange Commission, Hyperliquid Strategies intends to issue up to 160 million shares to fund additional purchases of HYPE tokens. Chardan Capital Markets is engaged as the financial advisor for this offering.
Hyperliquid Strategies has emerged from a merger involving Sonnet BioTherapeutics, a Nasdaq-listed biotech entity, and Rorschach I LLC, a special purpose acquisition company. Once the merger is finalized, its operations will be overseen by David Schamis as CEO, while Bob Diamond, the former CEO of Barclays, will take up the role of chairman.
This bold move by Hyperliquid was perceived positively, resulting in nearly an 8% surge in the value of HYPE, which recently reached $37.73. In contrast, the broader cryptocurrency market witnessed a slight downturn of 0.6%, as reported by CoinGecko.
Future Prospects for Hyperliquid Strategies
Upon completion of the merger, Hyperliquid Strategies is set to hold approximately 12.6 million HYPE tokens, boasting a valuation close to $470 million, alongside $305 million in cash reserves. These funds will also be allocated towards acquiring additional HYPE tokens, positioning Hyperliquid as the preeminent corporate holder of HYPE.
This treasury strategy reflects a wider shift wherein companies are seeking diverse methods—be it equity, debt, or alternative financial instruments—to build their cryptocurrency treasuries, moving beyond just Bitcoin and Ethereum. Despite this trend, the long-term viability of these treasury strategies often raises questions, particularly in the face of bearish market sentiments.
It’s noteworthy that Hyperliquid has established itself as a leading platform in recent times, especially with the increasing inclination towards perpetual futures trading.
In October, decentralized perpetual trading volume has surged past $1 trillion, outperforming the previous month’s record. With Hyperliquid leading the pack in trading volume, it’s clear that the appetite for such financial instruments remains robust.
