Nasdaq-listed Sonnet BioTherapeutics Inc.’s merger to become a HYPE digital asset treasury (DAT) has finally been approved, months after being announced, according to a statement.
Back in July, Sonnet BioTherapeutics said it had agreed to merge with Rorschach I LLC —a newly formed company loosely connected to Hyperliquid-backer and prominent crypto VC Paradigm — as part of its plan to create a publicly-traded HYPE DAT called Hyperliquid Strategies, Inc.
The DAT said at the time it expected to hold 12.6 million HYPE tokens and $305 million in cash, for a total estimated value of $888 million. Then, in October, Hyperliquid Strategies filed an S-1 statement with the U.S. Securities and Exchange Commission for a public offering to raise up to $1 billion.
Despite significant shareholder support, Hyperliquid Strategies CEO David Schamis recently said the official vote had been delayed. “While over 95% of the votes that have been received to date have voted in favor we are still lacking the requisite total number of votes to get to the finish line,” he said.
Hyperliquid is a popular decentralized perpetual futures exchange that has processed over $1.5 trillion in total trading volume since its launch in 2023.
The cumulative market cap of DATs has been taking a hit as prices for major cryptocurrencies declined. Many treasury firms recently launched stock repurchase programs.
In June, Lion Group Holding Ltd., a brokerage and trading firm based in Hong Kong, secured a $600 million facility to roll out its own Hyperliquid DAT. HYPE, which traded at about $47 when the DAT merger was first announced, is changing hands at nearly $33, according to The Block’s price page.
Other strategic investors in the Sonnet BioTherapeutics merger include Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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