Hyperliquid strategies wants $1B to buy further into the HYPE

Hyperliquid Strategies is doubling down on its Hyperliquid treasury plan, filing papers to raise up to $1 billion to purchase more tokens powering the world’s largest decentralized derivatives platform.

According to its S-1 registration statement with the US Securities and Exchange Commission on Wednesday, Hyperliquid Strategies unveiled its plan to offer up to 160 million shares of common stock to fund additional Hyperliquid (HYPE) purchases as well as other corporate expenses.

Chardan Capital Markets is serving as its financial advisor for the offering.

Hyperliquid Strategies is a pending merger entity formed by Nasdaq-listed biotech firm Sonnet BioTherapeutics and special purpose acquisition company Rorschach I LLC.

The merged entity will be led by David Schamis as CEO and Bob Diamond, the former CEO of Barclays, who will serve as chairman.

The news also appeared to have sparked a near 8% rally in the HYPE token to $37.73 over the last 24 hours, while the broader crypto market has fallen 0.6%, CoinGecko data shows.

Hyperliquid strategies positioned to lead HYPE race

When the merger closes, Hyperliquid Strategies is expected to hold 12.6 million HYPE tokens — currently worth nearly $470 million, while sitting on another $305 million in cash.

The $305 million is also intended to purchase more HYPE tokens, which would easily make Hyperliquid Strategies the largest corporate HYPE holder, CoinGecko data shows.

The HYPE treasury move reflects a broader trend of companies tapping equity, debt, and other financial instruments to build crypto treasuries beyond Bitcoin (BTC $109,769) and Ether (ETH $3,870). While many have seen an immediate boost in share prices, the sustainability of these altcoin treasury strategies has been called into question — especially during market downturns.

Demand may prove more resilient for Hyperliquid than most, however, as it has been one of the hottest crypto apps in recent months amid a rise in perpetual futures trading.

Perps have become popular due to their 24/7 trading, high leverage, no expiration, and the ability to profit from both rising and falling markets — attracting speculative traders seeking higher returns with minimal holding requirements.

Decentralized perp volume reaches $1T

Decentralized perps trading volume is higher than ever, with the first 23 days of October already seeing $1 trillion worth — smashing September’s record of $772 billion.

Oct. 10 also saw a daily record of $78 billion, DeFiLlama data shows.

Change in monthly perps trading volume since February 2021. Source: DeFiLlama

Hyperliquid leads October with $317.6 billion in trading volume, but Lighter, Aster, and edgeX have also fared well with $255.4 billion, $177.6 billion, and $60.6 billion, respectively.