HyperLiquid Strategies has filed documents to double its HyperLiquid Treasury plan and raise up to $1 billion to purchase more tokens that power the world’s largest decentralized derivatives platform.
HyperLiquid Strategies has disclosed plans to offer up to 160 million shares of its common stock to fund additional purchases of HyperLiquid (HYPE) and other corporate expenses, according to an S-1 registration statement filed with the U.S. Securities and Exchange Commission on Wednesday.
Chardan Capital Markets is acting as financial advisor to this offering.
Hyperliquid Strategies is a merger-seeking company formed by Nasdaq-listed biotechnology company Sonnet BioTherapeutics and special acquisition vehicle Rorschach I LLC.
The combined entity will have David Shamis as CEO and former Barclays CEO Bob Diamond as chairman.
The news appears to have triggered a nearly 8% rally in the HYPE token to $37.73 in the past 24 hours, while the overall crypto market fell by 0.6%, according to CoinGecko data.
Hyperliquid Strategies is positioned to lead the HYPE race
Once the merger is complete, Hyperliquid Strategies will hold 12.6 million HYPE tokens. It is currently worth about $470 million and has an additional $305 million in cash.
According to CoinGecko data, the $305 million is also aimed at purchasing more HYPE tokens, which would definitely make Hyperliquid Strategies the largest corporate HYPE holder.
HYPE’s treasury move reflects a broader trend of companies using equity, debt, and other financial instruments to build crypto treasuries beyond Bitcoin (BTC) and Ether (ETH).
Although many have experienced instant increases in stock prices, the sustainability of these altcoins’ financial strategies has been questioned, especially during market downturns.
However, demand may prove more resilient than most, as Hyperliquid has been one of the most popular crypto apps in recent months amid the rise in perpetual futures trading.
Related: Another “legacy” asset manager enters crypto ETF “Landrush”
Perps’ 24/7 trading, high leverage, no expiration date, and the ability to profit from both rising and falling markets have made them popular, attracting speculative traders seeking higher returns with minimal holding requirements.
Decentralized Perp volume reaches $1 trillion
Decentralized PERP trading volume is higher than ever, already worth $1 trillion in the first 23 days of October, breaking September’s record of $772 billion.
According to data from DeFiLlama, a record of $78 billion per day was also set on October 10th.
Hyperliquid leads the way in October with $317.6 billion in trading volume, but Lighter, Aster, and edgeX are also doing well with $255.4 billion, $177.6 billion, and $60.6 billion, respectively.
Magazine: Cliff bought two homes with a Bitcoin mortgage: Smart…or insane?
