Hyperliquid Strategies Plans $1 Billion Raise to Expand HYPE Token Holdings

Hyperliquid Strategies is intensifying its commitment to the ecosystem, unveiling plans to raise up to $1 billion to purchase additional HYPE tokens, which power the world’s largest decentralized derivatives platform.

According to a filing with the U.S. Securities and Exchange Commission (SEC) on Wednesday, the firm submitted an S-1 registration statement detailing its intention to offer up to 160 million shares of common stock. Proceeds from the offering will be used primarily to acquire more HYPE tokens and support general corporate activities. Chardan Capital Markets will act as the financial advisor for the transaction.

Hyperliquid Strategies is the product of a pending merger between Nasdaq-listed biotech firm Sonnet BioTherapeutics and special purpose acquisition company (SPAC) Rorschach I LLC. The combined entity will be led by David Schamis as Chief Executive Officer and Bob Diamond, the former Barclays CEO, who will serve as chairman.

Following the announcement, the HYPE token surged nearly 12% to $39 over the past 24 hours, according to CoinMarketCap data.

Building the Largest Hyperliquid Treasury

Once the merger is finalized, Hyperliquid Strategies is expected to control 12.6 million HYPE tokens, valued at nearly $470 million, alongside $305 million in cash reserves. The company plans to use those funds to acquire even more HYPE, positioning itself as the largest corporate holder of the token, CoinGecko data indicates.

This bold treasury strategy mirrors a growing trend among public companies expanding their crypto portfolios beyond Bitcoin and Ether. While such moves often boost investor sentiment in the short term, analysts have raised questions about the long-term sustainability of altcoin treasury strategies, particularly during volatile market conditions.

However, Hyperliquid may prove more resilient than others. Its namesake platform has become one of the fastest-growing decentralized applications, fueled by the popularity of perpetual futures, or “perps” — instruments that allow traders to speculate 24/7 with high leverage and no expiration dates.

Decentralized Perp Markets Hit $1 Trillion

Trading activity in decentralized perpetual futures has reached record levels. The first 23 days of October alone saw $1 trillion in trading volume, surpassing September’s $772 billion, according to DeFiLlama data.

On October 10, the market also logged an all-time daily high of $78 billion in trading volume. Hyperliquid leads the month with $317.6 billion, followed by Lighter ($255.4B), Aster ($177.6B), and edgeX ($60.6B).

With growing institutional interest and record-breaking market activity, Hyperliquid Strategies’ billion-dollar bet could further cement its position at the forefront of the decentralized derivatives landscape.