TLDR
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Sonnet pivots to crypto, merges to form Hyperliquid Strategies.
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Biotech to blockchain: Sonnet rebrands with $888M crypto deal.
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HYPE token fuels Sonnet’s $888M shift to crypto treasury model.
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Sonnet becomes HSI, now top public holder of HYPE token.
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Sonnet soars 218% on merger, enters crypto with HYPE at core.
Sonnet BioTherapeutics Holdings, Inc. (SONN) shares surged sharply in pre-market trading, reaching a high above $20 before settling around $16.47 by 9:53 AM EDT. This marks a dramatic increase of 218.57% (+$11.30) from the previous close of $5.17.
Sonnet BioTherapeutics Holdings, Inc. (SONN)
Sonnet BioTherapeutics, Inc. confirmed a transformative $888 million merger with Rorschach I LLC. The deal will turn the Nasdaq-listed biotechnology firm into Hyperliquid Strategies Inc., launching a crypto treasury centered on the HYPE token. This sharp price movement followed news of the company’s pivot to a blockchain strategy through direct exposure to the Hyperliquid ecosystem.
Sonnet BioTherapeutics to Become Hyperliquid Strategies Inc.
Sonnet BioTherapeutics, Inc. signed a definitive agreement with Rorschach I LLC to restructure as a crypto treasury company. The combined entity, Hyperliquid Strategies Inc. (HSI), will hold 12.6 million HYPE tokens and $305 million in cash. Together, the digital assets and cash position will create a crypto-focused public company valued at approximately $888 million.
The merger plan includes maintaining Sonnet’s biotech unit as a subsidiary under HSI while shifting the core strategy to digital asset management. Rorschach, backed by Atlas Merchant Capital and Paradigm Operations, will provide capital and strategic oversight. The parties expect HSI to trade under a new Nasdaq ticker after the merger closes.
Leadership changes include Atlas co-founder Bob Diamond as Chairman and David Schamis as CEO of the new entity. The company also plans to appoint former Boston Fed president Eric Rosengren to the board. Current Sonnet directors will retain limited roles during the transition.
HYPE Token Positioned as the Core Digital Asset
The HYPE token will serve as the central asset of Hyperliquid Strategies Inc.’s treasury model. HYPE powers the Hyperliquid blockchain, which supports high-throughput on-chain trading and decentralized financial applications. The new entity aims to grow its HYPE reserves further, using cash proceeds for additional purchases.
At launch, HSI will be the largest public holder of HYPE, with total token value initially estimated at $583 million. The entity plans to offer indirect exposure to HYPE through equity markets, bridging blockchain and traditional finance. Hyperliquid’s infrastructure includes HyperCore and HyperEVM, designed to support smart contracts and high-volume trading.
Hyperliquid recently recorded $1.5 trillion in annual perpetual volume and $11.3 billion in open interest. HYPE ranks among the top 15 global cryptocurrencies by market capitalization. The shift allows U.S. capital markets access to HYPE despite regulatory constraints on direct ownership.
Strategic Investors and Future Direction
Strategic backers of the transaction include Paradigm, Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital. These firms bring crypto market expertise, funding capacity, and network reach to support HSI’s growth. Their support underscores strong institutional alignment with the HYPE token and Hyperliquid protocol.
Sonnet will continue developing its oncology assets, including SON-1010, as a wholly owned HSI unit. It will also issue Contingent Value Rights (CVRs) to shareholders tied to potential biotech asset sales. Meanwhile, management remains engaged in commercial partnership discussions for remaining therapeutic candidates.
The business combination has board approval and awaits Sonnet shareholder consent and regulatory clearances. Closing is expected in the second half of 2025. Upon completion, HSI will represent a rare example of a public company holding major digital asset reserves anchored by the HYPE token.
