In a groundbreaking corporate transformation, shareholders of Nasdaq-listed biotech firm Sonnet BioTherapeutics Inc. have approved a merger to transition the company into a digital asset treasury (DAT) entity named Hyperliquid Strategies, Inc. The deal, initially announced in July 2025, involves a merger with Rorschach I LLC, a company associated with prominent crypto venture capital firm Paradigm, marking a full-scale pivot from biopharmaceuticals to digital asset management.
The newly formed DAT will be seeded with $305 million in cash and 12.6 million HYPE tokens, the native cryptocurrency of the Hyperliquid ecosystem, with an estimated total value of $888 million at announcement. In October 2025, Hyperliquid Strategies filed an S-1 statement with the U.S. Securities and Exchange Commission (SEC) for a public offering aiming to raise up to $1 billion, underscoring its ambitious scale.
Despite receiving over 95% favorable votes from shareholders, the official approval faced delays due to insufficient total votes, as noted by Hyperliquid Strategies CEO David Schamis. The merger now proceeds, with the company rebranding to operate entirely on the Hyperliquid blockchain—a high-performance layer-1 network designed for decentralized finance (DeFi) that has processed over $1.5 trillion in trading volume since its 2023 launch.
Strategic investors in this move include major crypto-focused firms such as Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital. This transition not only provides a substantial war chest for digital asset strategies but also sets a precedent for public companies on U.S. exchanges to formally embrace crypto as a core business model, potentially influencing broader institutional adoption.
