Sonnet BioTherapeutics has rolled out a $888 million HYPE Treasury Reserve Strategy. This initiative is part of a business merger with Rorschach I LLC, which has the backing of Atlas Merchant Capital and Paradigm. The newly formed entity, Hyperliquid Strategies Inc. (HSI), will manage 12.6 million HYPE tokens worth $583 million, along with $305 million in cash, bringing the total to $888 million.
According to the company’s press release, its business model now focuses on biotech and also manages one of the largest HYPE reserves globally. Moreover, the $305 million cash infusion will enable HSI to acquire even more HYPE tokens.
Strategic Players Join the HYPE Reserve Push
Atlas Co-founder Bob Diamond will chair HSI, while David Schamis becomes the CEO. Additionally, Eric Rosengren, former Boston Fed president, joins the board. These leadership additions bring heavy financial expertise to the firm. The deal is also supported by prominent backers like Paradigm, Galaxy Digital, Pantera Capital, and D1 Capital.
Besides, Sonnet retains its biotech operations under HSI. It plans to focus on developing SON-1010 while divesting other assets. Shareholders will receive CVRs tied to future biotech asset sales.
Additionally, Sonnet will raise $5.5 million via a private placement of preferred shares and warrants. A previous $2 million convertible note will also roll into this new funding round. The cash will help cover corporate operations and transaction costs.
Hyperion’s Early Success Boosts Confidence
In the meantime, Hyperion is ramping up its HYPE holdings. According to their press release, they just acquired 120,726 tokens for $5 million, bringing their total to over 1.4 million. With plans to utilize these tokens on HyperCore and HyperEVM, the company is looking to tap into staking rewards and cut down on trading fees.
Consequently, the momentum behind HYPE as a treasury asset is growing fast. Over 25 million tokens have already been locked by Hyperliquid. Sonnet’s new strategy could position it among the biggest players.
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