Hyperliquid Strategies filed an S-1 registration with the U.S. Securities and Exchange Commission on Wednesday to raise up to $1 billion through a public offering of 160 million common shares.
The company says the money will be used to purchase more HYPE tokens for its treasury and cover general corporate expenses. Chardan Capital Markets is acting as financial adviser for the offering, and would provide guidance on the structure and timing of the raise.
Hyperliquid Strategies is a pending merger entity formed by Nasdaq-listed biotech firm Sonnet BioTherapeutics and special purpose acquisition company Rorschach I LLC, with plans to create a firm built around crypto asset management.
The merger, which was initially announced in July, is expected to close within the year and will result in a new ticker symbol once trading begins on Nasdaq. The merged company will be led by CEO David Schamis, while Bob Diamond, former chief executive of Barclays, will serve as chairman, according to the SEC filing.
When the merger is complete, Hyperliquid Strategies is expected to hold 12.6 million HYPE tokens worth nearly $470 million, along with around $305 million in cash that can also be used to buy more tokens.
This large amount would make the company the biggest corporate holder of HYPE tokens, based on market data. In the filing, the company said it “aims to deploy its HYPE token holdings selectively, primarily through staking substantially all of its HYPE holdings. ”It also said it may explore other decentralized finance activities after internal reviews.
Shortly after the news, the price of HYPE surged to $39.02. This is a 11% increase in the last 24 hours from an intraday low of $34.81, according to CoinMarketCap.
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