Lion Group, a Hong Kong-based brokerage and trading firm, has successfully secured $600 million in financing from ATW Partners for its Hyperliquid treasury project. This led to a remarkable 19.78% increase in the company’s shares.
Hyperliquid Treasury Strategy
Wilson Wang, CEO of Lion Group, emphasized that Hyperliquid is a natural extension of their existing derivatives business into decentralized markets. According to Wang, Hyperliquid reflects their belief that decentralized blockchain applications represent the future of trading. This initiative aligns with a trend, pioneered in the traditional financial sector by Michael Saylor’s Strategy, where companies raise funds or take out loans to establish crypto-based treasuries.
Share Surge Following Financing Announcement
The announcement of the financing and Hyperliquid treasury project promptly reverberated through the market. Lion Group’s shares, listed on Nasdaq under the ticker LGHL, closed Wednesday’s regular trading session with an impressive 19.78% increase, reaching $3.33. Following this strong uptick, Yahoo Finance data indicated a 3.9% pullback in after-hours trading, suggesting that while investors responded positively to the news, profit-taking followed the initial enthusiasm.
Plan to Expand Cryptocurrency Operations
On the same day, the company also announced the relaunch of its cryptocurrency operations. Under this plan, Lion Group aims to expand its current investment product lineup. The company will evaluate the possibility of including cryptocurrency exposure in its existing portfolio, which includes exchange-traded funds (ETFs), over-the-counter options, and total return swap (TRS) products.
The $600 million financing and positive stock dynamics have reinforced Lion Group's intention to strengthen its position in the crypto market and expand its product lineup.
