Lion Group Secures $600 Million Credit Line for Hyperliquid Treasury, HYPE Price Dips
Despite a significant investment commitment, Hyperliquid (HYPE) experienced a price decline on Thursday. Lion Group Holding, a Nasdaq-listed company, announced it had secured a $600 million credit line from ATW Partners to establish a treasury reserve for HYPE. However, the cryptocurrency’s value fell by 7% following the announcement.
Lion Group’s $600 Million Bet Fails to Lift HYPE Price
Lion Group Holding revealed its agreement with New York-based investment firm ATW Partners on Wednesday. The funding aims to build a substantial HYPE treasury reserve, potentially making Lion Group the largest HYPE holder. The company intends to hold HYPE as its primary reserve asset.
The firm also plans to invest in “next-generation layer-1 treasury reserves,” including Solana (SOL) and Sui (SUI). Wilson Wang, CEO of LGHL, stated, “We see protocols like HYPE, with decentralized sequencing, as fundamental to building scalable DeFi systems. We may also allocate to Solana, a leader in consumer-oriented applications, and Sui, a high-performance and composable layer-1.”
The initial $10.6 million tranche of the capital is expected to be released on Friday. Lion Group has partnered with BitGo to act as custodian for its assets. While Lion Group’s previous cryptocurrency activities are not well-defined, the company indicated that this strategic reserve represents a “relaunch of cryptocurrency operations.”
This announcement follows Eyenovia’s disclosure of a $50 million HYPE treasury strategy on Tuesday.
Despite these treasury announcements, HYPE’s price continued to fall, extending its weekly loss to 14%. Analysts suggest the altcoin could decline to the $30 support level after breaking below a key channel.
Technical indicators suggest further bearish momentum. The Relative Strength Index (RSI) is testing its neutral level, and the Stochastic Oscillator is approaching oversold territory. A break below these levels could accelerate the downward trend.
The overall cryptocurrency market is facing headwinds due to ongoing geopolitical tensions in the Middle East, contributing to the downward pressure on HYPE.
Key Takeaways:
- Lion Group secured a $600 million credit line from ATW Partners to launch its Hyperliquid treasury.
- The firm aims to hold HYPE as its primary reserve asset, with investments in SUI and Solana.
- HYPE fell 7% on Thursday despite the announcement.
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