Hyperliquid Sets Sights on Raising $1 Billion through Public Offering

Hyperliquid Strategies, in a recent filing with the US Securities and Exchange Commission, unveiled its intention to launch a public offering with a target of raising up to $1 billion. The company plans to issue 160 million common shares, with Chardan Capital Markets providing financial advisory services.

What Is Hyperliquid’s New Business Model?

Hyperliquid Strategies is transitioning into a crypto treasury firm through the upcoming merger of biotech firm Sonnet BioTherapeutics and Rorschach I LLC, a special purpose acquisition company. Announced in July, the merger is planned for completion by the end of 2025, aiming to integrate Sonnet BioTherapeutics’ infrastructure with Hyperliquid’s digital asset management expertise.

How Will Hyperliquid Utilize the Capital Raised?

The capital raised from the public offering will primarily fund corporate operations and the acquisition of HYPE tokens. Hyperliquid Strategies, currently holding 12.6 million HYPE tokens and $305 million in cash reserves, plans to intensively stake its assets to earn passive income and expand into DeFi-focused initiatives.

The post-merger entity will be traded on Nasdaq with an undisclosed stock code. Leading the venture, former Barclays CEO Bob Diamond is set to chair the board, with David Schamis appointed as the executive lead. This merger seeks to blend financial industry experience with innovative crypto strategies.

Established in 2023, Hyperliquid has emerged as a robust decentralized futures trading platform, recording over $1.5 trillion in trading volume to date. The 2024 launch of its native HYPE token, with a total supply of 1 billion, has been notable. Approximately 38% of these tokens are designated for community rewards.

According to The Block, HYPE has experienced a 7.67% price surge, trading at $37.73. Hyperliquid anticipates sustaining momentum as it engages in strategic asset operations and market expansions.

Hyperliquid Strategies has articulated its staking-centric approach as a cornerstone for generating revenue within the rapidly growing digital finance landscape.

Hyperliquid’s aggressive steps towards redefining its business structure and acquiring substantial capital signal a promising path forward in the crypto space. The synergy of traditional financial acumen with digital asset strategies underscores its ambition to diversify operations and fortify its market presence.