Hyperliquid Strategies plans to raise $1 billion to further invest in HYPE.

CN
8 hours ago

Hyperliquid Strategies is advancing its Hyperliquid reserve plan and has submitted documents to raise up to $1 billion for the purchase of more tokens supporting the world's largest decentralized derivatives platform.

According to its S-1 registration statement submitted to the U.S. Securities and Exchange Commission on Wednesday, Hyperliquid Strategies disclosed plans to issue up to 160 million common shares to further purchase Hyperliquid (HYPE) tokens and for other corporate expenses.

Chardan Capital Markets is serving as the financial advisor for this issuance.

Hyperliquid Strategies is a merging entity formed by Nasdaq-listed biotech company Sonnet BioTherapeutics and special purpose acquisition company Rorschach I LLC.

After the merger, David Schamis will serve as CEO, and former Barclays CEO Bob Diamond will serve as chairman.

According to CoinGecko data, following the announcement, the HYPE token rose nearly 8% in the past 24 hours to $37.73, while the overall cryptocurrency market fell by 0.6%.

Upon completion of the merger, Hyperliquid Strategies is expected to hold 12.6 million HYPE tokens, with a current market value of nearly $470 million, and hold $305 million in cash.

According to CoinGecko data, this $305 million will also be used to purchase more HYPE tokens, making Hyperliquid Strategies easily the largest corporate holder of HYPE.

The HYPE reserve action reflects a general trend among companies to build cryptocurrency reserves beyond Bitcoin (BTC) and Ethereum (ETH) through equity, debt, and other financial instruments.

Although many companies' stock prices have surged in the short term, the sustainability of this alternative cryptocurrency reserve strategy is being questioned, especially during market downturns.

However, Hyperliquid's demand has shown greater resilience, as it has become one of the hottest crypto applications in recent months amid a surge in perpetual contract trading.

Perpetual contracts attract speculative traders seeking high returns and low holding requirements due to their advantages of being tradable around the clock, high leverage, no expiration date, and the ability to profit in both rising and falling markets.

Decentralized perpetual contract trading volume has reached new highs, with $1 trillion achieved in just 23 days in October, breaking the previous record of $772 billion set in September.

According to DefiLlama data, October 10 also set a single-day record of $78 billion.

Hyperliquid leads October with a trading volume of $317.6 billion, but Lighter, Aster, and edgeX also performed well, with $255.4 billion, $177.6 billion, and $60.6 billion, respectively.

Related: Major crypto wallets launch defense networks to address $400 million loss from phishing attacks

Original article: “Hyperliquid Strategies plans to raise $1 billion to further invest in HYPE”

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