Nasdaq-listed Sonnet BioTherapeutics has announced a definitive agreement to merge with Rorschach I LLC, forming Hyperliquid Strategies Inc. (HSI).
The new entity, according to a Monday press release, will debut as a crypto asset management powerhouse, while boasting a treasury of 12.6 million HYPE tokens and over $305 million in cash, valued at an estimated $888 million at the time of closing.
Sonnet BioTherapeutics, previously focused on oncology drug development, is making an unprecedented pivot into the world of crypto treasury management.
The merger with Rorschach I, an entity backed by Atlas Merchant Capital, Paradigm, and other leading digital asset investors, will see Sonnet transformed from a biotech innovator into a major player in the crypto asset space.
The Crypto Strategy of Hyperliquid Strategies Inc
HSI will become the largest U.S.-listed public company to hold HYPE tokens in its treasury. HYPE is the native token of the Hyperliquid Layer-1 blockchain. The decentralized exchange protocol has recently surged to over $1.5 trillion in trading volume, establishing itself as a market leader in perpetual derivatives.
After the merger, Sonnet will operate as a wholly owned subsidiary of HSI, continuing to develop its biotech assets while seeking partners for its pipeline. Its shareholders will receive CVRs tied to the future value of Sonnet’s biotech assets.
Furthermore, Rorschach owners and new investors will control approximately 98.8% of the combined company, while Sonnet legacy shareholders will retain about 1.2%.
Leadership And Governance
According to the statement, the new company will be led by seasoned financial and crypto executives:
- Chairman: Bob Diamond, Co-founder and CEO of Atlas Merchant Capital
- CEO: David Schamis, Co-founder and CIO of Atlas
- Board Member: Eric Rosengren, former President of the Boston Federal Reserve
- Additional Directors: Two independent directors from Sonnet’s current board.
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