Hyperliquid Price Jumps to $48 Amid Merger Announcement
- Sonnet BioTherapeutics announces merger with Rorschach, rebranding as Hyperliquid Strategies.
- The new company is expected to hold $583 million in HYPE tokens post-merger.
- HYPE aims for a 38% gain but encounters resistance near a key ascending trendline.
Hyperliquid (HYPE) is trading near $48 on Monday following Sonnet
BioTherapeutics’ (SONN) announcement of a merger agreement with Rorschach I
LLC to launch as a new HYPE treasury company, Hyperliquid Strategies Inc.
Sonnet BioTherapeutics Announces Merger and Launch of HYPE Treasury Strategy
Sonnet BioTherapeutics, a Nasdaq-listed company, has announced a merger
agreement with Rorschach, a newly formed entity backed by investment firms
Atlas Merchant Capital and Paradigm, to rebrand as Hyperliquid Strategies
(HSI).
The new entity is expected to hold approximately 12.6 million HYPE tokens,
valued at $583 million—based on the token’s price when the agreement was
signed—plus an additional $305 million in gross cash at closing. Sonnet
stated that the $305 million in gross cash proceeds will be used to purchase
more HYPE, as it seeks to establish one of the largest reserves for the
token.
“Hyperliquid has emerged as a crypto project with real fundamentals: strong
core contributors, demanding product quality, and meteoric growth,” said Matt
Huang, co-founder of Paradigm, in the press release.
The company also added that upon completion of the potential merger, Sonnet
will operate as a wholly-owned subsidiary of HSI. Bob Diamond, co-founder and
CEO of Atlas Merchant Capital, will become Chairman of the Board of
Hyperliquid Strategies.
“We are thrilled with this opportunity to partner with Sonnet to establish a
leading crypto treasury management strategy that ultimately delivers great
value to shareholders,” said Bob Diamond in the press release.
Hyperliquid Strategies will continue to trade on Nasdaq with a new ticker
following the completion of the merger, which involves several investment
firms, including Paradigm, Galaxy Digital, Pantera Capital, D1 Capital,
Republic Digital, and 683 Capital, according to the press release.
This move follows a surge in demand for altcoin treasuries among low-capital
publicly traded companies in the last quarter. In the last month, Eyenovia and
Lion Group Holding also announced plans for a HYPE treasury.
Shares of Sonnet BioTherapeutics soared more than 70% following the merger
announcement, according to data from Google Finance.
HYPE Aims for Further Gains but Faces Key Resistance at Ascending Trendline
HYPE faces resistance near an ascending trendline on the upper limit after
gaining nearly 25% last week. A move above this trendline could see HYPE
extend its rally by more than 30% towards the $70 mark.
HYPE/USDT Daily Chart
However, a firm rejection could see HYPE find support near the lower limit of
an ascending trendline if the 14-day exponential moving average (EMA) fails
to trigger a price rebound. Further down, the $36 and $30 price levels could
serve as key support.
The Relative Strength Index (RSI) and the Stochastic Oscillator (Stoch) are on
the verge of retreating from their overbought regions, indicating signs of
bullish fatigue.
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