HYPE drops 7% despite Lion Group's $600 million Hyperliquid treasury announcement
- Lion Group secured a $600 million facility from ATW Partners to launch its Hyperliquid treasury.
- The firm aims to hold HYPE as its primary reserve asset with the intention of investing in SUI and Solana reserves.
- HYPE declined 7% on Thursday despite the announcement.
Hyperliquid (HYPE) declined 7% on Thursday after Nasdaq-listed Lion Group Holding (LGHL) revealed that it secured $600 million from investment firm ATW Partners to initiate its HYPE treasury reserve.
HYPE sees bearish pressure despite Lion Group's $600 million Hyperliquid treasury bet
Nasdaq-listed trading company Lion Group Holding secured a $600 million facility from New York-based investment firm ATW Partners to build a HYPE treasury reserve, the firm announced on Wednesday. This would make Lion Group the largest treasury holder of HYPE.
The firm intends to purchase HYPE as its primary reserve asset but will also invest in "next-generation layer-1s treasury reserve," including Solana (SOL) and Sui (SUI).
"We view protocols like HYPE, with decentralized sequencing, as foundational to building scalable DeFi systems. We may also allocate to Solana, a leader in consumer-facing applications, and Sui, a performant, composable layer-1," said Wilson Wang, CEO of LGHL.
The company stated that the first closing of $10.6 million of the capital will be released by Friday. Lion Group also revealed that it partnered with BitGo to serve as the custodian of its assets. Although Lion Group's previous crypto operations are unclear, it noted that the push for a strategic reserve is a "relaunch of crypto operations."
The announcement comes after Eyenovia revealed a $50 million HYPE treasury strategy on Tuesday.
HYPE dropped over 7% on Thursday, stretching its weekly loss to 14% despite the treasury announcements. The altcoin could decline to the $30 support level after moving below the lower boundary of a key channel.
HYPE/USDT daily chart
The Relative Strength Index (RSI) is testing its neutral level, while the Stochastic Oscillator (Stoch) is testing the oversold region. A successful crossover below in both indicators will accelerate the bearish momentum.
The bearish pressure comes amid sustained Middle East war tension weighing on the crypto market.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
