Nasdaq-listed Sonnet BioTherapeutics has announced a significant shift towards cryptocurrency, creating a subsidiary focused on digital assets.
New Business with Rorschach
On Monday, Sonnet announced a business combination with Rorschach, a newly formed company to spearhead its crypto-focused strategy. The initiative will transform Sonnet into Hyperliquid Strategies Inc. (HSI), making it the largest publicly traded U.S. company to hold HYPE tokens on its balance sheet.
Hyperliquid Strategy
HSI plans to acquire 12.6 million HYPE tokens, valued at approximately $583 million at the time of the agreement. Additionally, it will maintain $305 million in cash reserves, bringing the total value of the entity to $888 million. It was also indicated that part of these cash reserves will be used for future purchases of HYPE tokens.
Support from Institutional Investors
The initiative is backed by heavyweight institutional investors including Atlas Merchant Capital, Paradigm, Galaxy Digital, and others. Paradigm co-founder Matt Huang described Hyperliquid as a project with robust fundamentals, highlighting growing institutional interest in HYPE tokens despite their limited accessibility in the U.S.
As Sonnet undergoes this transformation, it will continue to operate its clinical oncology portfolio under the HSI corporate umbrella, bridging traditional finance with new opportunities in the digital asset sphere.
