tl;dr
Hyperliquid Strategies files S-1 to raise $1 billion via Nasdaq merger, leveraging HYPE token buybacks and blockchain growth while navigating regulatory frameworks.
**Hyperliquid Strategies Files S-1 to Raise $1 Billion in Public Offering**
Hyperliquid Strategies, a nascent entity poised to merge with Nasdaq-listed Sonnet BioTherapeutics and special purpose acquisition company (SPAC) Rorschach I LLC, has officially submitted an S-1 registration statement to the U.S. Securities and Exchange Commission (SEC). The filing outlines plans to raise up to $1 billion through the issuance of 160 million shares of common stock, marking a pivotal step in the company’s evolution. Chardan Capital Markets has been appointed as the financial advisor for the fundraising initiative.
The pending merger, first announced in July, is expected to close within the year, after which the combined entity will trade on Nasdaq under a new ticker symbol. The company’s leadership includes Bob Diamond, former CEO of Barclays, as Chairman, and David Schamis, the CEO, who emphasized the strategic rationale behind the S-1 filing.
**Strategic Capital Raising and Token Expansion**
Schamis stated, “Today we filed an S-1. This document is to allow us to issue additional equity into the market following the close of our transaction. We will only be selling equity if and when we believe the market conditions to be favorable. We have no obligations or requirements to issue any additional capital.”
The proceeds from the public offering will be allocated to general corporate purposes, including the expansion of Hyperliquid’s treasury holdings of its native HYPE token. Currently, the company holds 12.6 million HYPE tokens and $305 million in cash. Hyperliquid plans to deploy these assets through staking initiatives, aiming to generate sustained returns, while also exploring decentralized finance (DeFi) opportunities within the ecosystem.
**2025 Milestones Highlight Ecosystem Growth**
Hyperliquid’s 2025 performance has been marked by significant achievements. The platform led the crypto industry in token buybacks, allocating over $644.64 million through its Assistance Fund—a figure representing nearly half of all token buyback spending this year. This effort resulted in the repurchase of 21.36 million HYPE tokens, accounting for approximately 2.1% of the total supply.
Monthly buybacks averaged $65.5 million, peaking at $110.62 million in August, with an average price of $30.18 per token. On the blockchain front, Hyperliquid outpaced traditional networks, with fees surging 1,600% year-over-year, rising from $2.4 million in October 2024 to $41 million in October 2025. This growth was driven by the HIP-3 launch, which introduced permissionless perpetuals and strategic fee reductions, catalyzing record trading volumes.
In contrast, Ethereum and Solana experienced declines, while Bitcoin’s on-chain fees plummeted by 73% during the same period, underscoring Hyperliquid’s competitive edge.
**Future Outlook**
As Hyperliquid prepares for its Nasdaq listing, the company’s focus remains on leveraging its HYPE token holdings and blockchain innovations to create value for shareholders. With a clear roadmap of strategic investments and a robust financial foundation, Hyperliquid aims to solidify its position as a leader in the evolving crypto market.
The S-1 filing signals the company’s readiness to scale further, while its track record of aggressive buybacks and blockchain growth positions it as a formidable player in the sector. As the merger nears completion, investors and industry observers will be closely watching how Hyperliquid navigates the intersection of traditional finance and decentralized ecosystems.