Strategic Alliance Unveiled: Biotech Firm and Crypto Investors Combine Forces for $888 Million Treasury Strategy

**Paradigm and Galaxy Back Biotech Merger to Pivot into $888 Million Hyperliquid Treasury Strategy**

In a groundbreaking move, Sonnet BioTherapeutics, a publicly listed biotech firm, has announced that it will be merging with Rorschach I LLC, a newly formed entity backed by Atlas Merchant Capital and other crypto-focused investors. The merger aims to pivot the company’s focus from its current biotechnology endeavors to a significant crypto treasury anchored by the HYPE token.

Under the terms of this strategic alliance, the combined entity will adopt a new name, Hyperliquid Strategies, Inc., which will be listed on the Nasdaq Capital Market. Once the deal is finalized, the newly formed corporation will hold approximately 12.6 million HYPE tokens, valued at around $583 million. Additionally, the merged company will gain access to at least $305 million in fresh capital.

The transaction has attracted strategic participation from prominent names within the digital asset space, including Paradigm Ventures and Galaxy Digital Asset Management. This partnership reflects growing institutional interest in Hyperliquid’s HYPE token, which currently ranks 11th by market capitalization.

Matt Huang, co-founder of Paradigm, expressed his enthusiasm for this alliance, stating that Hyperliquid boasts “real fundamentals: strong core contributors, exacting product quality, and meteoric growth.” He emphasized the importance of institutional demand for HYPE exposure, highlighting its potential to address accessibility gaps in the US market.

The merger is a testament to Hyperliquid’s rapid expansion into the crypto space, as the company has successfully captured over 80% of the on-chain perpetual futures market.

Source: cryptoslate.com