Ah, dear reader, prepare to be astonished! Sonnet BioTherapeutics, once a humble cancer drug developer, has decided to join the world of cryptocurrency in a most unexpected manner. 💰💊💸
In a recent press release, it was announced that Sonnet BioTherapeutics, a Nasdaq-listed biotech firm, has agreed to an $888 million business combination with Rorschach I LLC, a newly formed entity backed by Atlas Merchant Capital and Paradigm. This bold move will see Sonnet pivot into a crypto treasury strategy, leaving behind its traditional biotech roots.
The resulting entity, Hyperliquid Strategies Inc. (HSI), will hold a whopping 12.6 million Hyperliquid (HYPE) tokens, worth a staggering $583 million, and $305 million in cash. This positions HSI as one of the largest corporate holders of Hyperliquid’s native asset.
Inside Sonnet’s High-Stakes Crypto Reinvention
The deal hinges on two key components: $583 million worth of HYPE tokens (12.6 million at current prices) and $305 million in fresh capital, which Hyperliquid Strategies Inc. (HSI) will use to accumulate additional tokens. This positions HSI as one of the largest single holders of HYPE, a strategic reserve that could influence the token’s liquidity and market dynamics.
The structure is telling: Rorschach’s backers, including Atlas Merchant Capital and Paradigm, will control 98.8% of HSI post-merger, leaving Sonnet’s existing shareholders with just 1.2%. For a Nasdaq-listed entity, this near-total ownership shift is virtually unprecedented.
According to the press release, HSI will enter a Sponsor Advisory Agreement with Rorschach to integrate HYPE into its treasury strategy, suggesting plans beyond passive accumulation.
Upon closing, Bob Diamond, the former Barclays CEO and Atlas co-founder, will chair the board of HSI. David Schamis, Atlas CIO, will take the CEO post. They’ll be joined by a new CFO and at least one notable addition: Eric Rosengren, former president of the Boston Fed.
The revamped board blends traditional finance pedigree with regulatory acumen, a clear signal that the team understands the scrutiny that comes with bringing crypto assets into a public company framework.
Meanwhile, the biotech arm isn’t disappearing; it’s being siloed. Sonnet will operate as an HSI subsidiary, continuing work on SON-1010 (its lead oncology drug) while jettisoning other assets. Shareholders will receive Contingent Value Rights, a consolation prize tying payouts to future biotech milestones. But with 98.8% control going to new investors, the message is clear: Sonnet’s future is crypto, not cancer.
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2025-07-14 18:00