Hyperliquid Strategies seeks $1 billion raise to expand HYPE treasury

Hyperliquid Strategies filed an S-1 statement with the U.S. Securities and Exchange Commission for a public offering to raise up to $1 billion.

According to the Wednesday filing, the company plans to offer up to 160 million shares of its common stock for the raise. Chardan Capital Markets is serving as its financial advisor for the offering.

Hyperliquid Strategies is a pending merger entity formed by Nasdaq-listed biotech firm Sonnet BioTherapeutics and special purpose acquisition company Rorschach I LLC, with an aim to establish a crypto treasury company focused on the Hyperliquid ecosystem. Sonnet announced the merger in July, and it is expected to close within this year.

The merged entity will trade on Nasdaq under a new undisclosed ticker, led by Chairman Bob Diamond, the former CEO of Barclays, and CEO David Schamis.

Hyperliquid Strategies plans to use the proceeds for general corporate purposes, including the acquisition of Hyperliquid's HYPE tokens to expand its treasury. The company currently holds 12.6 million HYPE and 305 million in cash.

"[The company] aims to deploy its HYPE token holdings selectively, primarily through staking substantially all of its HYPE holdings, which Pubco expects will generate ongoing staking rewards," the company said in the filing, adding that it may also pursue other non-staking DeFi-related activities within the ecosystem following internal reviews. 

Hyperliquid is a high-performance decentralized perpetual futures exchange that has processed over $1.5 trillion in total trading volume since launch in 2023. 

Last year, Hyperliquid launched its native token HYPE, with a supply of 1 billion tokens, of which around 38% is allocated for community rewards. According to The Block's price page, HYPE rose 7.67% in the past day to trade at $37.73.