Sonnet BioTherapeutics Crypto Pivot: $888M HYPE Fund Deal

Key Takeaways

• Sonnet BioTherapeutics pivots from biotechnology to cryptocurrency investment with HYPE tokens
• Establishes HSI fund worth $888 million focused on HYPE tokens from the Hyperliquid ecosystem
• Targets holding 12.6 million HYPE tokens ($583 million) plus $305 million in cash
• Sonnet BioTherapeutics will become the largest publicly traded company in the US holding HYPE tokens
• Hyperliquid currently has a $16.2 billion market cap, ranking as the 12th largest token globally
• Sonnet BioTherapeutics will maintain biotechnology operations alongside HYPE investment
  

Merger Agreement and Strategic Transformation

Sonnet BioTherapeutics, a Nasdaq-listed biotechnology firm, has announced a major strategic shift into the cryptocurrency sector. Through a newly formed joint venture with Rorschach, the company has launched an $888 million investment initiative focused on HYPE tokens—the native currency of the rapidly expanding Hyperliquid blockchain ecosystem.

As part of the transformation, Sonnet BioTherapeutics will be rebranded as Hyperliquid Strategies Inc. (HSI). Upon completion of the transition, HSI will become the largest publicly traded company in the United States holding HYPE tokens on its balance sheet.

This bold move mirrors the strategic playbook of companies like MicroStrategy, which pivoted into Bitcoin as a treasury asset. Sonnet now aims to give investors exposure to HYPE tokens via public equity markets—a breakthrough for U.S. investors who face barriers accessing HYPE directly.

Investment Goals and Market Potential

The company aims to hold 12.6 million HYPE tokens, valued at approximately $583 million at the time of the agreement signing. In addition to holding HYPE tokens, Sonnet BioTherapeutics is also expected to have $305 million in cash, bringing the total value to $888 million. This cash will also be used to purchase additional HYPE tokens in the future.

Hyperliquid is a high-throughput layer 1 blockchain that supports perpetual futures trading and other basic financial products on-chain. With a market capitalization of $16.2 billion, Hyperliquid is currently the 12th largest token by valuation in the global cryptocurrency market.

With the emergence of HSI, investors can gain indirect exposure to HYPE through the stock market, creating a bridge between traditional finance and the Hyperliquid blockchain infrastructure. This is particularly important as HYPE tokens are difficult to access in the current US market.

Support from Organizations and Company Future

Sonnet BioTherapeutics’ new project is supported by many prestigious investment organizations, including Atlas Merchant Capital, Paradigm, Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital.

Paradigm co-founder Matt Huang commented that Hyperliquid has “broken through” to become a cryptocurrency project with solid fundamentals. He stated that they have observed institutional demand for HYPE investment, while HYPE tokens remain difficult to access in the United States.

Sonnet BioTherapeutics is applying a strategy similar to MicroStrategy, which pivoted from business intelligence to Bitcoin investment, providing indirect access to cryptocurrency through the stock market.

While transitioning to the cryptocurrency sector, Sonnet BioTherapeutics will continue operating as a subsidiary under HSI. Sonnet BioTherapeutics is expected to retain its clinical cancer assets in the future.