1. BIOTECH FIRM TO TRANSFORM INTO CRYPTO TREASURY ENTITY

2. NEW COMPANY TO HOLD $583M IN HYPE TOKENS + $305M CASH

Nasdaq-listed Sonnet BioTherapeutics is set to merge with Rorschach I LLC, shifting its core focus from biotechnology to crypto treasury management under the new name Hyperliquid Strategies Inc. (HSI).

Key Details:

Valuation: $888 million

  • HYPE Token Holdings: 12.6M tokens (~$583M)

  • Cash Reserves: $305M

  • Ticker: New Nasdaq symbol post-merger

  • Investors: Paradigm, Galaxy Digital, Pantera, Republic, D1 Capital, 683 Capital

  • HSI will lead crypto treasury operations using Hyperliquid’s Layer-1 blockchain, with $HYPE as its central asset. Some biotech programs like SON-1010 will continue under retained operations

.Leadership Changes:

Chairman: Bob Diamond (Atlas Merchant Capital)

  • CEO: David Schamis (Atlas CIO)

  • Board Additions: Eric Rosengren (ex-Boston Fed), Sonnet independents

  • Private Placement & Funding:

$5.5M raised via convertible preferred stock & warrants

  • $2M in convertible notes to convert into equity

    Proceeds to support biotech and deal expenses

  • Ownership Post-Merger:

Rorschach & New Investors: 98.8%

  • Sonnet Stakeholders: 1.2%

  • Market Outlook: A bold pivot from biotech to blockchain—positioning HSI as a major crypto asset manager on Nasdaq.

#CryptoMerger ##USCryptoWeek #SonnetBio #Hyperliquid #CryptoTreasury