Nasdaq Biotech Company Wagers Entire Treasury on HYPE Crypto Token, Making a Daring Investment in Digital Assets
Hyperliquid Soars as Publicly Traded Crypto Treasury Company
As of July 6, Hyperliquid has made a surprising leap to become the 13th-largest cryptocurrency by market cap, a status few in the industry could have predicted. This rapid growth has been fueled by the recent merger of Sonnet BioTherapeutics and Hyperliquid, forming Hyperliquid Strategies Inc (HSI), a publicly traded crypto treasury company.
HSI, which will hold significant amounts of Hyperliquid's native token, HYPE, aims to become a leading model for crypto-native treasury management in the public markets. The merger, valued at $888 million, was backed by a powerhouse of institutional investors including Paradigm, Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital.
David Schamis, also of Atlas, will become CEO of HSI, while Bob Diamond, Co-founder and CEO of Atlas Merchant Capital, will serve as Chairman. Two independent directors from Sonnet will also join the HSI board.
Sonnet BioTherapeutics raised $5.5 million via a private placement of convertible preferred shares and warrants to finance the merger. Hyperliquid Strategies Inc will remain listed on Nasdaq under a new ticker, becoming one of the largest public holders of HYPE globally.
Hyperliquid, an emerging Layer-1 blockchain, is known for its high-throughput on-chain trading infrastructure. The platform, co-founded by Jeff Yan and his Harvard classmate known as “iliensinc,” aims to address shortcomings in the crypto trading landscape, especially after the collapse of centralized exchanges like FTX. Hyperliquid features two core components: HyperCore, which powers on-chain perpetual futures and supports up to 200,000 orders per second, and HyperEVM, a general-purpose smart contract platform that extends HyperCore’s liquidity to dApps and developers.
The HYPE token has gained considerable market traction, experiencing recent price surges toward $44-$50 levels with bullish momentum. The project also implements aggressive token buybacks reported as high as $2 million daily, and more than $850 million worth of tokens have already been burned, providing strong scarcity dynamics and community confidence.
A unique feature of Hyperliquid's token economics is the deflationary mechanism where a portion of trading fees is used to buy back and burn HYPE tokens, linking trading volume directly to token scarcity. The token distribution is designed to reward early users and community participants, with 31% distributed via airdrops to early builders, 38.89% reserved for community rewards, while the core team holds 23.8%, locked and vesting gradually, with small allocations for operations and grants.
Hyperliquid Strategies Inc (HSI) sees an opportunity to offer indirect exposure to HYPE through equity markets. The company will also issue a Contingent Value Right (CVR) to shareholders tied to the biotech assets of HSI. $2 million in convertible notes will be converted at the time of the transaction.
As HSI pursues broader institutional adoption, including a possible Nasdaq listing, exposure to HYPE is becoming more accessible to traditional investors. The merger marks a significant step forward for Hyperliquid, positioning it as a user-first Layer-1 blockchain and decentralized perpetual trading platform combining advanced trading technology, a strong token economic model, and an expanding ecosystem backed by technical founders with high-frequency trading expertise and a commitment to decentralization without venture capital influence.
[1] Hyperliquid Official Website
[2] Hyperliquid Whitepaper
[3] Hyperliquid Medium
[4] Hyperliquid Strategies Inc Press Release
[5] CoinMarketCap - HYPE
- The rapid growth of Hyperliquid, now the 13th-largest cryptocurrency, is fueled by its merger with Sonnet BioTherapeutics to form Hyperliquid Strategies Inc (HSI), a publicly traded crypto treasury company.
- HSI, with significant holdings of Hyperliquid's native token, HYPE, aims to become a leading model for crypto-native treasury management in public markets.
- Hyperliquid, a Layer-1 blockchain, is known for its high-throughput on-chain trading infrastructure, addressing shortscomings in the crypto trading landscape.
- The HYPE token, gaining market traction, has seen price surges and aggressive token buybacks, with over $850 million worth of tokens burned for strong scarcity dynamics.
- Hyperliquid Strategies Inc (HSI) sees an opportunity to offer indirect exposure to HYPE through equity markets, while also issuing a Contingent Value Right (CVR) tied to the biotech assets of HSI.
- As traditional investors gain exposure to HYPE, Hyperliquid positions itself as a user-first Layer-1 blockchain and decentralized perpetual trading platform, combining advanced trading technology, a strong token economic model, and an expanding ecosystem backed by technical founders.
- For more information about Hyperliquid, you can visit its official website, read the whitepaper, follow updates on its Medium page, or check its market statistics on CoinMarketCap.
