Sonnet BioTherapeutics and Rorschach Form Hyperliquid Strategies

TLDR

• HSI holds $888 million in HYPE tokens and cash.
• Bob Diamond leads as Chairman, with David Schamis as CEO.
• Hyperliquid generated $310 million in revenue over 12 months.

In a recent business move, Sonnet BioTherapeutics Inc. and Rorschach I LLC have joined forces with Atlas Merchant Capital affiliates to form Hyperliquid Strategies Inc. (HSI). The aim of HSI is to build one of the largest treasuries of the Hyperliquid protocol’s native token, HYPE. The formation of HSI marks a significant event in the world of cryptocurrency and digital assets.

The combination will involve holding $583 million in HYPE tokens and $305 million in gross cash invested at closing, bringing the total to $888 million. This effort is supported by institutional investors like Paradigm, Galaxy Digital, and Pantera Capital. The new company, HSI, will also be Nasdaq-listed, taking a public crypto treasury role.

Key People Leading Hyperliquid Strategies

Bob Diamond, the co-founder and CEO of Atlas, will serve as Chairman of Hyperliquid Strategies. Diamond is renowned for his tenure as CEO of Barclays, bringing extensive experience from financial services to the company. The CEO role will be held by David Schamis, CIO and co-founder of Atlas, known for his previous senior roles in investment management.

Additionally, former President of the Boston Fed, Eric Rosengren, will join the board as an independent director. Rosengren brings significant regulatory and institutional expertise, further strengthening the governance of the new entity. This team aims to maximize the opportunities available in the digital asset space.

Institutional Support and Strategic Objectives

In an official statement, Bob Diamond mentioned, “We are delighted by this opportunity to partner with Sonnet in establishing a leading crypto treasury management strategy to ultimately deliver strong value to shareholders.” The focus is on building a strategic reserve of HYPE, which could significantly influence its price and liquidity.

Matt Huang, co-founder of Paradigm, emphasized Hyperliquid’s strong fundamentals and institutional demand. Huang noted that while demand exists, the native HYPE token faces access challenges in the United States. Institutional backing aims to enhance Hyperliquid’s ecosystem by making strategic moves in treasury management.

Impact on Cryptocurrencies and Digital Assets

The HYPE token is directly impacted as HSI focuses on its acquisition as a main treasury asset. Other cryptocurrencies like ETH and BTC might see indirect effects due to possible treasury rebalancing strategies. As such, HYPE remains the central focus in treasury growth projections.

Hyperliquid’s recent performance includes $1.571 trillion in perpetual futures trading volume over the past 12 months. It also generated $56 million in fees in June, contributing to a cumulative revenue total of $310 million. These figures highlight Hyperliquid’s strong positioning in the market.

Market Strategy and Historical Comparisons

The strategy of creating a massive treasury for a digital asset is not new, resembling approaches by companies like MicroStrategy with BTC. Similar strategies have been seen with firms influencing Layer-1 and DeFi assets, which have drawn institutional interest and resulted in large-scale market impacts.

The current narrative suggests a focus on real revenue growth and product quality, along with institutional validation as key motivations. There is an atmosphere of optimism within developer forums and community channels about these upcoming changes and expected market momentum.

“We believe HYPE and the Hyperliquid protocol represent a truly differentiated offering within the digital asset space.”

Bob Diamond, Chairman, Hyperliquid Strategies