Hyperliquid Strategies Files $1B IPO to Build HYPE Treasury
IPO Filing Targets $1 Billion Raise
Hyperliquid Strategies, a digital asset treasury firm focused on the HYPE token, has filed an S-1 registration statement with the U.S. Securities and platform Commission to raise up to $1 billion in an initial public offering. The Wednesday filing outlines plans to issue 160 million shares of common stock. Chardan Capital Markets is advising the deal.
The company, described as a pending merger entity between Sonnet BioTherapeutics and Rorschach I LLC, intends to use the proceeds for general corporate purposes, including the accumulation of HYPE tokens tied to the Hyperliquid decentralized platform. The merger was first announced in July and is expected to close later this year, later than which the combined company will trade on Nasdaq under a new ticker.
The board will be led by Bob Diamond, former chief executive of Barclays, with David Schamis serving as CEO. The group positions itself as a crypto-focused treasury platform designed to manage digital assets tied to the Hyperliquid ecosystem.
Investor Takeaway
Inside the Filing
According to the SEC filing, Hyperliquid Strategies plans to deploy its capital into HYPE token accumulation and staking. The company said it intends to “deploy its HYPE token holdings selectively, primarily through staking substantially all of its HYPE holdings,” which it expects to generate ongoing rewards. It may also engage in “other non-staking, DeFi-related activities within the ecosystem” following internal review.
As of the filing, Hyperliquid Strategies reported holding 12.6 million HYPE tokens and $305 million in cash. The firm’s stated goal is to build a treasury that supports liquidity, staking operations, and decentralized financial participation in the Hyperliquid network.
While many DeFi projects remain privately funded or token-based, the filing represents one of the first attempts to link a public equity offering directly to a decentralized ecosystem’s treasury strategy. Analysts say it could test investor appetite for regulated exposure to onchain tokens held by corporate entities.
Hyperliquid’s Rapid Growth
Hyperliquid, launched in 2023, operates as a high-performance decentralized platform for perpetual futures and has processed more than $1.5 trillion in cumulative trading volume. The platform has gained traction among traders for its low-latency execution and order-book architecture — features uncommon among decentralized platforms.
Its native token, HYPE, debuted last year with a total supply of 1 billion. Roughly 38% of that supply has been allocated for community rewards, with the rest distributed among developers, investors, and ecosystem reserves. Data from The Block show that HYPE rose 7.67% over the past 24 hours to trade at $37.73, reflecting renewed market interest following the IPO news.
Market participants say Hyperliquid’s growing dominance in decentralized derivatives — estimated at more than 70% of DEX perpetual trading volume — makes it a key player in the next wave of institutional DeFi integration.
Investor Takeaway
Outlook for the Merger Entity
The pending merger between Sonnet BioTherapeutics and Rorschach I reflects a broader trend of SPAC and reverse-merger structures being used to list blockchain-linked firms in U.S. markets. If approved, Hyperliquid Strategies would debut as a listed vehicle providing exposure to the HYPE ecosystem — a model reminiscent of MicroStrategy’s BTC treasury strategy but framed within the DeFi context.
Chairman Bob Diamond’s involvement brings a traditional finance pedigree to an otherwise unconventional business model. Analysts expect regulatory review to focus on how token holdings are valued, disclosed, and integrated into corporate reporting standards. If successful, the listing could open a new path for blockchain-based entities viewking regulated capital access without issuing tokens directly to investors.
The merger and IPO are expected to close before year-end, pending SEC approval and market conditions. Should demand hold, Hyperliquid Strategies would rank among the largest DeFi-linked equity offerings to date.
