Lion Group received a $600 million investment from ATW Partners for the Hyperliquid treasury. Following this development, the company's shares, traded on NASDAQ, increased by nearly 20%. The obtained funds are expected to be particularly directed to altcoin projects such as Solana and Sui.
Hong Kong-based brokerage and trading firm Lion Group secured $600 million in financing for the Hyperliquid treasury under an agreement with ATW Partners. Following this announcement, the company's stocks rose by approximately 19.78% on Wednesday. The first installment of the financing, amounting to $10.6 million, will be completed within 48 hours after the announcement. The company also announced that it will restart its cryptocurrency activities and plans to add crypto exposure to ETFs, over-the-counter options, and total return swap products.
Lion Group CEO Wilson Wang stated that the Hyperliquid project is a natural step to move the current derivative trading space to decentralized markets. Wang said, 'Hyperliquid reflects our belief that blockchain-based decentralized applications will play a significant role in the future of trading.' The project is seen as part of a trend initiated by Michael Saylor's Strategy company for corporate entities to raise funds and utilize credit to create crypto-based treasuries.
The first part of the $600 million investment, which amounts to $10.6 million, will officially be available within 48 hours following the announcement. These funds are planned to be transferred to altcoins such as Solana (SOL) and Sui (SUI) as part of Lion Group's treasury strategy focusing on 'application-priority protocols'. The company's SOL and SUI assets will be securely stored by BitGo.
Financing and Treasury Announcement Created a Rise in Stocks
The financing received for Lion Group's Hyperliquid treasury and the related announcement had a strong impact on the market. Stocks traded under the code LGHL on NASDAQ closed Wednesday's trading day at $3.33, up 19.78%. According to Yahoo Finance data, the stock price pulled back by 3.9% in after-hours trading. These movements indicate that investors reacted positively to the news but then turned towards profit realization.
On the same day, the company also announced that it has reactivated its cryptocurrency operations. In this context, Lion Group aims to expand its portfolio; the possibility of adding cryptocurrency exposure to existing ETFs, over-the-counter options, and total return swap products is being evaluated. Founded in 2015 and publicly listed on NASDAQ in 2020, Lion Group aims to combine traditional financial instruments with decentralized finance (DeFi) applications.
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