Surprising Shift: US Biotech Firm Makes Bold Move into Crypto
In an unexpected pivot, Sonnet BioTherapeutics, a US-based biotechnology company, is making waves beyond the health sector—this time in the world of cryptocurrency. The Nasdaq-listed firm has announced a major merger that's drawing attention across both industries.
Merging with Rorschach I LLC
Sonnet will merge with Rorschach I LLC, a company backed by Atlas Merchant Capital. As part of the deal, Sonnet will adopt a new name: Hyperliquid Strategies, Inc. At the centre of this new structure is HYPE, a cryptocurrency token that has recently gained significant traction.
After the merger, the newly formed company will hold approximately:
12.6 million HYPE tokens
$305 million in cash
This brings the total estimated valuation of the merged entity to around $888 million. The company will continue trading on Nasdaq under a new ticker symbol and will implement a treasury strategy centred around the HYPE token.
Biotech and Crypto Under One Roof
Although the name and structure are changing, Sonnet’s core operations in biotechnology will remain. The company will function as a subsidiary of Hyperliquid Strategies and will continue its work in pharmaceutical research and health technologies. Current shareholders will receive contingent value rights (CVRs) tied to future biotech revenues.
Backed by Industry Heavyweights
Several well-known players in the crypto investment space are backing the merger, including:
Paradigm
Galaxy Digital
Pantera Capital
D1 Capital
Republic Digital
683 Capital
In addition, Atlas Merchant Capital founder Bob Diamond will serve as chairman, and David Schamis will take on the role of CEO. This adds significant financial and leadership strength to the new organisation.
Hyperliquid Protocol: Massive Growth
The Hyperliquid protocol has seen explosive growth over the past year:
More than $1.5 trillion in trading volume
A record $11.3 billion in open interest
Paradigm co-founder Matt Huang described it as a “compelling opportunity for institutional investors,” noting rising demand for the HYPE token, particularly among US-based entities.
Market Reaction: A 300% Jump
The news sent Sonnet BioTherapeutics’ stock soaring. In pre-market trading on Monday, shares jumped by 300%, pushing the company’s market cap past $16 million. Investors clearly responded quickly and positively to the announcement.
Why It Matters
This merger highlights a growing trend: traditional companies, even those in biotech, are beginning to embrace crypto in meaningful ways. Hyperliquid and its HYPE token are now firmly on the radar of major investors. It’s a sign that digital assets are moving beyond niche markets and into the broader corporate world.
Looking Ahead
This merger doesn’t just combine two companies—it blends two very different industries. With strong financial backing and a new crypto-driven strategy, Hyperliquid Strategies could be a name to watch in both finance and technology. The future of crypto is no longer just in blockchain startups—it’s now part of how legacy companies are planning to grow.
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