Hyperliquid Strategies Inc. has filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to raise up to $1 billion through an equity offering. The proposed sale includes up to 160 million shares of common stock, with Chardan Capital Markets serving as the financial advisor under a committed equity facility (ChEF Purchase Agreement) dated October 22.
According to the filing, Hyperliquid Strategies intends to use the proceeds to purchase additional Hyperliquid (HYPE) tokens, the native asset of the decentralized derivatives platform, and to stake a substantial portion of its holdings to generate yield. The company currently manages 12.6 million HYPE tokens and holds $305 million in cash, both of which are expected to grow significantly through the planned capital raise.
Reverse merger with Sonnet BioTherapeutics and Rorschach I LLC
The offering follows an $888 million reverse merger agreement between Nasdaq-listed Sonnet BioTherapeutics Holdings Inc. and private firm Rorschach I LLC, which will form Hyperliquid Strategies Inc. once completed. The new entity will trade under the Nasdaq ticker “PURR” once approved.
Under the Business Combination Agreement, Rorschach will merge with Hyperliquid Strategies, followed by Sonnet merging into the same framework, creating a diversified public vehicle with exposure to digital assets. Upon completion, Sonnet investors are expected to retain approximately 1.2% of the new entity, a potential dilution risk noted in the filing.
Leadership of the combined company will include David Schamis as chief executive officer and Bob Diamond, former CEO of Barclays, as chairman. The strategic mix of traditional financial expertise and blockchain-focused capital allocation marks a notable milestone in the convergence of traditional finance and decentralized markets.
Building a regulated digital asset treasury
The SEC filing outlines Hyperliquid Strategies’ plan to build one of the largest corporate HYPE treasuries, turning its equity capital raise into a source of on-chain liquidity and staking rewards. This hybrid strategy reflects a growing trend of companies tapping into capital markets to back blockchain-based asset positions.
“The firm’s move sends a strong bullish signal for HYPE,” said Shivam Thakral, CEO of BuyUCoin. “Institutional accumulation through a structured digital asset treasury could bolster demand, scarcity, and long-term confidence in the Hyperliquid ecosystem.”
Through the committed equity facility with Chardan, Hyperliquid Strategies may sell shares over time, receiving proceeds that are then deployed into HYPE accumulation and staking, converting traditional market investment flows into crypto exposure.
Market reaction and token outlook
The announcement immediately triggered a market response, with HYPE price up over 10% in the past 24 hours to around $38, according to CoinGecko. Despite the rally, the token remains below the 0.618 Fibonacci resistance level ($44–$45), where it traded before the October 10 market-wide sell-off.
Technical indicators show that the $36.5 level, corresponding to the 0.382 Fibonacci retracement, has acted as strong support, with the price consolidating near the 20-day simple moving average around $40. Analysts suggest that a sustained breakout above $41 could open the path for a retest of the $44–$45 area, potentially signaling a trend reversal for HYPE.
Hyperliquid’s growing role in decentralized derivatives
Hyperliquid has rapidly emerged as one of the leading decentralized perpetual futures trading platforms, surpassing $317 billion in trading volume in October alone, according to DefiLlama. The broader decentralized perps market recorded a record $1 trillion in trading volume in the first 23 days of the month, highlighting strong demand for 24/7 leverage-based trading.
As Hyperliquid Strategies takes shape as a digital asset treasury pioneer, its integration of public equity financing with crypto asset accumulation could serve as a template for future hybrid financial structures, connecting traditional securities regulation with the decentralized finance economy.
By aligning its capital markets activities with blockchain-based yield generation, Hyperliquid Strategies is positioning itself at the forefront of institutional-grade engagement in DeFi, further reinforcing the link between regulated equity markets and on-chain liquidity ecosystems.
Roman Zaika
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