Hyperliquid Strategies Wins Approval to Pursue $1B Offering and HYPE Token Treasury

• Sonnet BioTherapeutics shareholders approved the merger that will create the HYPE-focused digital asset treasury.
• Analysts expect the new entity to buy at least $265 million worth of HYPE.

Sonnet BioTherapeutics Inc. has secured the shareholder approval needed to merge with Hyperliquid Strategies and Rorschach I LLC, clearing the final hurdle in its transition into a digital asset treasury holding HYPE tokens.

The approval comes after an earlier delay caused by the company’s failure to meet quorum, despite strong early support. More than 95% of submitted votes backed the merger, according to Hyperliquid Strategies CEO David Schamis. With the vote now complete, the combined entity can advance its treasury strategy and prepare for public-market activity.

Hyperliquid Demand Builds as Major Buying Nears

As we previously outlined, Hyperliquid Strategies had outlined its intention to maintain 12.6 million HYPE tokens and $305 million in cash, and it has already filed with the U.S. Securities and Exchange Commission to raise up to $1 billion. Analysts note that part of that capital will be directed into token accumulation. 

According to OAK Research, the new treasury could initially allocate up to 2.6 million HYPE, backed by at least $265 million following the transaction’s closure. The research group added that Hyperliquid’s routine buybacks average roughly $2.5 million per day, so the new injection represents a step change in scale.

Moreover, the potential size of these purchases has drawn attention as the market digests the recent $314 million HYPE unlock. OAK observed that there is an ongoing debate about whether the incoming demand will come through over-the-counter channels or be executed on exchanges. Buying directly on the open market would naturally amplify price impact, improve token valuations, and expand the company’s ATM issuance capacity. 

Major Investors Reinforce the DAT Strategy

The digital asset treasury space has come under pressure in recent weeks as the crypto markets as a whole have been in decline. Several companies have announced stock buybacks plans to stabilize their positions. Despite these headwinds, strategic investors, such as Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital, are backing the Sonnet deal. 

Meanwhile, the broader Hyperliquid ecosystem continues expanding. As noted in our earlier posts,  Lion Group Holding secured a $600 million facility in June to build its own treasury structure tied to the exchange. Hyperliquid itself has processed more than $1.5 trillion in perpetual futures trading since debuting in 2023.

HYPE traded near $47 when the merger was unveiled, but has since retraced with broader market corrections. However, the token rebounded nearly 7% today, climbing above $33 from an intraday low near $30, according to CoinMarketCap. The recent 1.75 million-token unlock worth $57 million has not seen any sales from team wallets, with part of that allocation already restaked.