Hyperliquid Strategies, a pending merged entity involving Nasdaq-listed Sonnet BioTherapeutics and Rorschach I LLC, has filed an S-1 registration statement with the US Securities and Exchange Commission (SEC) to raise up to $1 billion. The funds will primarily be used to acquire more of the Hyperliquid (HYPE) token, which powers the world's largest decentralized derivatives platform.
The plan involves offering up to 160 million shares of common stock to finance HYPE purchases and cover other corporate expenses.
Key Financial Details and Market Impact
- Valuation: Once the merger closes, Hyperliquid Strategies is expected to hold 12.6 million HYPE tokens, valued at nearly $470 million.
- Cash Reserves: The entity will also sit on $305 million in cash, which is earmarked for purchasing additional HYPE tokens, positioning Hyperliquid Strategies to become the largest corporate HYPE holder.
- Market Reaction: The news prompted a near 8% rally in the HYPE token's price to $37.73 in the last 24 hours, counter to the broader crypto market's 0.6% decline.
- Leadership: The merged entity will be led by David Schamis as CEO and former Barclays CEO Bob Diamond as chairman.
Context: The Rise of Decentralized Perpetual Futures (Perps)
The move to build a large HYPE treasury reflects a broader corporate trend of accumulating altcoins, not just Bitcoin and Ether. This demand for HYPE is tied to the massive growth of decentralized perpetual futures trading:
- Record Volume: Decentralized perps trading volume has reached new highs, with $1 trillion traded in the first 23 days of October alone, shattering September’s record of $772 billion.
- Daily High: October 10th saw a daily volume record of $78 billion.
- Hyperliquid's Lead: In October, Hyperliquid led the decentralized perps market with $317.6 billion in trading volume, followed by Lighter ($255.4 billion), Aster ($177.6 billion), and edgeX ($60.6 billion).
The surging popularity of perpetual futures—due to their 24/7 nature, high leverage, and no expiration—has made Hyperliquid one of the hottest crypto applications, potentially making its treasury strategy more resilient than others.
October 2025, Cryptoniteuae