Sonnet BioTherapeutics Launches $888M Crypto Treasury Strategy with HYPE Token Focus

Sonnet BioTherapeutics has unveiled an $888 million HYPE Treasury Reserve Strategy following a merger with Rorschach I LLC, backed by Atlas Merchant Capital and Paradigm. The newly formed entity, Hyperliquid Strategies Inc. (HSI), will oversee 12.6 million HYPE tokens valued at $583 million alongside $305 million in cash—creating one of the largest HYPE reserves globally.

The strategic shift combines biotech operations with crypto asset management, with Atlas co-founder Bob Diamond chairing HSI and David Schamis stepping in as CEO. Former Boston Fed president Eric Rosengren joins the board, bolstering the firm's financial expertise. Paradigm, Galaxy Digital, and Pantera Capital are among the notable backers.

Sonnet retains its biotech division under HSI, prioritizing development of SON-1010 while divesting other assets. Shareholders will receive contingent value rights (CVRs) tied to future biotech sales. A $5.5 million private placement of preferred shares and warrants will fund corporate operations, absorbing a prior $2 million convertible note.