Hyperliquid Strategies Launches $30M Stock Buyback to Boost HYPE Exposure

Hyperliquid Strategies Inc. (NASDAQ: PURR), a publicly-traded vehicle focused on the HYPE token, has announced a stock repurchase program authorizing the buyback of up to $30 million of its outstanding shares over the next 12 months. The program, which can be executed via open market or private transactions, is designed to enhance shareholder value and increase per-share exposure to the HYPE token, the native asset of the Hyperliquid blockchain ecosystem.

The announcement follows the company's recent debut on the Nasdaq. Hyperliquid Strategies was formed through a merger between healthtech firm Sonnet BioTherapeutics and special purpose acquisition company (SPAC) Rorschach, which had backing from crypto venture capital firm Paradigm. The merger was completed on December 2, with trading under the ticker PURR commencing on December 3. Following the buyback news, the stock experienced initial volatility before stabilizing, closing slightly lower at around $3.67.

CEO David Schamis stated the firm is "fully committed to maximizing shareholder value through disciplined execution of our treasury strategy" and that its primary objective is providing efficient access to HYPE. The company plans to use its cash reserves to expand its HYPE holdings, aiming to deliver capital-efficient exposure for U.S. and institutional investors.

This move aligns Hyperliquid Strategies with a growing trend of digital asset treasuries (DATs) utilizing buyback programs. The firm has notable strategic backers including Galaxy Digital, Pantera Capital, Republic Digital, 683 Capital, and D1 Capital, and has named former Barclays CEO Bob Diamond as its chairman.

In a related development, Hyperliquid Strategies filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) in October, seeking to raise up to $1 billion to fund further treasury activities, including staking HYPE holdings or deploying capital in non-staking DeFi initiatives.