U.S. publicly traded company Sonnet will merge to form Hyperliquid Strategies and launch a Treasury Reserve Strategy, holding 12.6 million HYPE tokens and $3 billion in cash.

BlockBeats News, July 14th, according to The Block, Nasdaq-listed company Sonnet BioTherapeutics has agreed to an $8.88 billion merger deal, will be renamed Hyperliquid Strategies, and will launch the HYPE treasury strategy.

The Nasdaq-listed company Sonnet BioTherapeutics has agreed to merge with Rorschach I LLC to form Hyperliquid Strategies and launch a treasury strategy. According to a press release issued on Monday, Rorschach I LLC is a newly formed company by entities affiliated with Atlas Merchant Capital LLC, affiliated entities of Paradigm Operations LP, and other sponsor parties.

Upon completion of the transaction, the new entity will be renamed Hyperliquid Strategies and is expected to hold 12.6 million HYPE tokens and $305 million in cash, with a total valuation of approximately $8.88 billion. Strategic investors participating in the transaction include Paradigm, Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital. Post-merger, Hyperliquid Strategies will continue to trade on Nasdaq, with a change in stock ticker symbol, becoming a publicly traded cryptocurrency treasury company.

The parties involved stated that the cash proceeds will enable Hyperliquid Strategies to increase its holdings of HYPE tokens and build a top-tier HYPE treasury reserve. Upon completion of the transaction, Atlas Co-Founder and CEO Bob Diamond will serve as Chairman of Hyperliquid Strategies, while another Atlas Co-Founder and CIO David Schamis will assume the role of CEO.

Market data shows that SONN's stock price surged 273.11% in pre-market trading, with a pre-market trading price of $19.29, a $14.05 increase from the previous trading price.