Hyperliquid Strategies has revealed its plan to raise $1 billion to expand its holdings of Hyperliquid (HYPE) tokens, to strengthen its position in the growing decentralised derivatives market. The company disclosed its plan in an S-1 registration statement filed with the U.S. Securities and Exchange Commission (SEC) on Wednesday.
According to the filing, Hyperliquid Strategies plans to issue up to 160 million shares of common stock. The funds will be used to purchase more HYPE tokens and support general corporate activities. Chardan Capital Markets has been appointed as the financial advisor for the offering.
Hyperliquid Strategies is a pending merger between Nasdaq-listed biotech firm Sonnet BioTherapeutics and Rorschach I LLC, a special purpose acquisition company (SPAC). The combined entity will be led by David Schamis as Chief Executive Officer and Bob Diamond, the former Barclays CEO, as Chairman.
Following the announcement, the price of HYPE tokens rose nearly 9% in 24 hours to $40.02, according to CoinGecko. This increase came even as the wider crypto market saw a 0.6% decline during the same period.
HYPE price action | Source: CoinMarketCap
Once the merger is finalized, Hyperliquid Strategies is expected to hold about 12.6 million HYPE tokens, valued at around $470 million, along with $305 million in cash. The company also intends to use part of this cash to buy additional tokens, which would make it the largest corporate holder of HYPE, CoinGecko data shows.
While this strategic move is aimed at improving user activity, market observers have started to question whether these altcoin-heavy treasury strategies can hold up during downturns.
However, based on data, Hyperliquid’s position appears strong. Its decentralised trading platform has seen increasing user activity, due to the popularity of perpetual futures trading.
If the momentum is well-sustained, user demands and activities could make Hyperliquid Strategies’ HYPE-focused investment plan more resilient compared to similar corporate moves in the crypto sector.
Also Read: Forward Industries Forms Solana Treasury Advisory Board
