Sonnet BioTherapeutics Holdings, Inc. (SONN) has signed a definitive agreement to merge with Rorschach I LLC, backed by Atlas Merchant Capital and Paradigm Operations, forming Hyperliquid Strategies Inc. (HSI) in a deal valued at $888 million. The Nasdaq-listed biotech firm will pivot to a crypto treasury model centered on the HYPE token, triggering a 218% stock surge to $16.47 in pre-market trading.
HSI will hold 12.6 million HYPE tokens (valued at $583 million) and $305 million in cash, making it the largest public holder of HYPE. The token powers Hyperliquid's blockchain, which processes $1.5 trillion in annual perpetual volume and holds $11.3 billion in open interest. Strategic investors including Paradigm, Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital are backing the merger.
Leadership will transition to Atlas co-founder Bob Diamond as Chairman and David Schamis as CEO, with former Boston Fed president Eric Rosengren joining the board. Sonnet's biotech assets will continue as a subsidiary, while shareholders receive Contingent Value Rights. The deal, approved by boards, awaits shareholder consent and regulatory clearance for a H2 2025 closing.