Singapore-based Lion Group Holding has decided to reallocate its cryptocurrency reserves, investing $5 million into the HYPE token, highlighting the company's strategic intentions in decentralized finance.
Transition to HYPE
Lion Group Holding announced its intention to gradually convert its holdings in Solana (SOL) and Sui (SUI) into Hyperliquid's HYPE token. The company plans to take a phased approach, leveraging market volatility to acquire HYPE at favorable prices. CEO Wilson Wang described the transition as a 'disciplined accumulation process' aimed at improving portfolio efficiency and positioning the company for 'sustained growth.'
Support from Institutional Custody
The strategic shift aligns with the launch of institutional custody services for HYPE in the U.S. by crypto custodian BitGo. Wang noted that Hyperliquid’s advanced trading infrastructure and on-chain order book represent 'the most compelling opportunity in decentralized finance.'
Market Reaction
News of the strategic pivot triggered a sharp rally in Lion Group’s stock. Shares closed Monday’s session up 11% and extended gains by another 10% in after-hours trading, reaching $1.65 according to GoogleFinance data.
Lion Group's decision to reallocate its assets into HYPE emphasizes the growing interest in decentralized finance and institutional custody, potentially benefiting the company's future in this sector.
