Hyperliquid Strategies is doubling down on its plan for Hyperliquid Treasury, filing paperwork to raise up to $1 billion to purchase more tokens that power the world's largest decentralized derivatives platform.
According to its S-1 registration statement with the U.S. Securities and Exchange Commission on Wednesday, Hyperliquid Strategies disclosed its plan to offer up to 160 million shares of common stock to fund additional Hyperliquid (HYPE) purchases as well as other company expenses.
Chardan Capital Markets is acting as financial advisor to the offering.
Hyperliquid Strategies is a pending merger entity formed by Nasdaq-listed biotechnology company Sonnet BioTherapeutics and special purpose acquisition company Rorschach I LLC.
The combined entity will be led by David Shamis as CEO and Bob Diamond, former CEO of Barclays Bank, who will serve as Chairman.
The news also appears to have sparked a roughly 8% rally in the HYPE token to $37.73 over the past 24 hours, while the broader cryptocurrency market fell 0.6%, CoinGecko data shows.
Hyperliquid Strategies is positioned to lead the HYPE race
When the merger closes, Hyperliquid Strategies is expected to own 12.6 million HYPE tokens – currently worth around $470 million, while holding another $305 million in cash.
CoinGecko data also showed that the $305 million is also intended to buy more HYPE tokens, which would easily make Hyperliquid Strategies the largest HYPE holder.
HYPE's treasury move reflects a broader trend of companies leveraging stocks, debt, and other financial instruments to build cryptocurrency treasuries beyond Bitcoin (BTC) and Ethereum (ETH).
While many saw an immediate rise in stock prices, the sustainability of these altcoin treasury strategies has come into question – especially during market downturns.
However, demand for Hyperliquid may be more resilient than most other apps, as it has been one of the hottest cryptocurrency apps in recent months amid a surge in perpetual futures trading.
Related to: Another “legacy” asset manager is getting into the “land rush” of crypto ETFs
Perps have become popular due to their 24/7 trading, high leverage, no expiration, and ability to profit from both rising and falling markets – attracting speculative traders looking for higher returns with minimal holding requirements.
Decentralized crime reaches $1 trillion
DeFi trading volume is higher than ever, with the first 23 days of October already seeing $1 trillion worth – breaking September's record of $772 billion.
October 10 also saw a daily record of $78 billion, DeFiLlama data showed.
Hyperliquid leads October with trading volume of $317.6 billion, but Lighter, Aster, and edgeX also performed well at $255.4 billion, $177.6 billion, and $60.6 billion, respectively.
magazine: Cliff Bought Two Houses with Bitcoin Mortgages: Smart…or Crazy?
