Update July 16, 2025, 6:10 am UTC: This article has been updated to add comments from a Sonnet BioTherapeutics spokesperson.
Nasdaq-listed biotech company Sonnet BioTherapeutics announced a strategic pivot into crypto, unveiling an $888 million entity to launch a Hyperliquid (HYPE) digital asset treasury.
On Monday, Sonnet said it formed a business combination with the newly created Rorschach to launch a treasury strategy focused on the HYPE token, the native crypto token of the fast-growing Hyperliquid ecosystem.
The deal includes transforming Sonnet into Hyperliquid Strategies Inc. (HSI), which is expected to be the largest United States-listed public company holding the HYPE token on its balance sheet. The company aimed to hold 12.6 million HYPE tokens, worth about $583 million when the agreement was made.
In addition, it expects to have $305 million in cash, bringing its total value to $888 million. These funds will also be used to purchase more HYPE tokens in the future.
Providing indirect exposure to HYPE via equity
Hyperliquid is a high-throughput layer-1 blockchain that supports onchain trading of perpetual futures and other financial primitives. CoinGecko data shows that Hyperliquid has a market capitalization of $16.2 billion and is currently the 12th-largest token by valuation.
With HSI’s creation, investors can gain indirect exposure to HYPE through equity markets, bridging traditional finance with blockchain infrastructure.
Sonnet’s new project is backed by prominent companies, including Atlas Merchant Capital, Paradigm, Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital and 683 Capital.
The biotech company seems to be copying the playbook of the business intelligence firm-turned Bitcoin investor, Strategy, which provides indirect exposure to crypto through equity markets.
In the press release, Paradigm co-founder Matt Huang said Hyperliquid has “broken out” as a crypto project with strong fundamentals. He said they see institutional demand for HYPE exposure, while the token is difficult to access in the United States.
Meanwhile, Sonnet will continue to operate as a subsidiary under HSI’s umbrella. It’s expected to retain its ongoing clinical oncology assets.
Related: Hyperliquid news update: Growing user base could send HYPE back to $45
Why Hyperliquid was chosen as the treasury asset
When asked why the HYPE token was chosen for the treasury over more established crypto like Bitcoin or Ether, a Sonnet BioTherapeutics spokesperson told Cointelegraph that it presents a different opportunity and is cheaper to trade.
“They chose HYPE because it has created a completely different opportunity than the rest of crypto,” the spokesperson told Cointelegraph.
He added that it’s a non-custodial, decentralized layer-1 blockchain and digital asset exchange, and “it is significantly less expensive to trade versus the current large incumbent exchanges.”
The spokesperson added that HSI wants to give US equity investors access to HYPE through a Nasdaq-listed company.
Cointelegraph also asked the company why the final investment was $888 million, a number considered auspicious in Chinese culture. “It was a sign of good fortune that that’s the number we got to,” the spokesperson answered.
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