Hyperliquid Eyes $1B Raise: HYPE Token Buyback Planned?

 Key Insights:

• Hyperliquid filed an S-1 with the SEC to raise $1B through equity with Chardan.
• The firm may use part of proceeds to acquire and stake HYPE tokens strategically.
• HYPE token gained 7% after filing, supported by institutional interest and network upgrades.

Hyperliquid Strategies Inc. has submitted a registration statement to the U.S. Securities and Exchange Commission seeking to raise up to $1 billion through a public stock offering. The company plans to issue 160 million common shares under a committed equity facility with Chardan Capital Markets.

Funds raised through the offering will support general operations, provide additional liquidity, and may be used to expand the company’s digital asset strategy. The filing notes that part of the proceeds could go toward purchasing HYPE tokens, although no specific allocation was confirmed.

HYPE Tokens Part of Broader Asset Strategy

Hyperliquid disclosed that it currently holds 12.6 million HYPE tokens along with $305 million in cash. The company said it expects to stake a substantial portion of its token holdings to generate consistent returns over time.

In its filing, the company stated, “The company aims to deploy its HYPE token holdings selectively, primarily through staking substantially all of its HYPE holdings.” Whether additional tokens will be acquired using funds from the offering remains uncertain.

Ongoing Merger to Bring Public Listing

The share offering is tied to a pending merger involving Sonnet BioTherapeutics, listed on Nasdaq, and Rorschach I LLC, a special-purpose acquisition company. Upon completion, the combined entity will begin trading on Nasdaq under a new ticker, which has not yet been disclosed.

Leadership for the new company has been announced. Bob Diamond, former CEO of Barclays, will serve as Chairman. David Schamis has been named CEO. The transaction is expected to close later this year.

HYPE Token Gains as Institutional Interest Grows

Following the announcement, the HYPE token rose by nearly 7% in 24 hours, outpacing the broader crypto market, which saw a slight decline. Trading data from TradingView shows steady volume during the move.

Institutional adoption continues to expand. Lion Group recently revealed plans to convert some Solana and Sui assets into HYPE. In addition, Bitwise Asset Management filed for a Hyperliquid-focused ETF structure, designed to support broader investor access to the token.

The HIP-3 network upgrade, recently launched by the Hyperliquid team, now allows permissionless creation of futures markets. This update has contributed to a stronger outlook for the token ecosystem.