Hyperliquid Strategies has filed to raise up to $1 billion in a bold move to expand its holdings of the HYPE token, strengthening its role in the fast-growing decentralized derivatives market.
Key Takeaways
- Hyperliquid Strategies filed with the SEC to raise $1 billion through a 160 million share offering to purchase more HYPE tokens and support general operations.
- The move follows a merger involving biotech firm Sonnet BioTherapeutics and SPAC Rorschach I LLC, with David Schamis set to become CEO and ex-Barclays chief Bob Diamond taking the chairman role.
- HYPE token rallied over 10% following the announcement, defying a broader crypto market downturn.
- Hyperliquid leads decentralized perpetuals trading, commanding a 70% market share with $317.6 billion in October volume.
What Happened?
Hyperliquid Strategies Inc., a newly formed entity resulting from a merger between Sonnet BioTherapeutics and Rorschach I LLC, has filed an S-1 registration statement with the U.S. Securities and Exchange Commission. The filing outlines plans to raise up to $1 billion through the issuance of 160 million shares of common stock. The proceeds will be used to significantly increase its holdings of HYPE tokens and for broader corporate purposes. Chardan Capital Markets will act as the financial advisor for the offering.
🚨 JUST IN: Hyperliquid Strategies Inc. files S-1 with SEC to raise up to $1B through a 160M share offering, with part of proceeds to be used for potential $HYPE token purchases. pic.twitter.com/pDt2WujT7R
— Cointelegraph (@Cointelegraph) October 23, 2025
Hyperliquid’s Big Bet on Its Own Token
Hyperliquid Strategies already holds 12.6 million HYPE tokens valued at approximately $470 million, and has an additional $305 million in cash reserved for future token purchases. If fully executed, this strategy would make it the largest corporate holder of HYPE, highlighting its deep alignment with the Hyperliquid network.
The decision reflects a growing trend of firms building crypto treasuries beyond Bitcoin and Ether, signaling a shift toward specialized token ecosystems. Other firms such as Lion Group and Eyenovia have also added HYPE to their balance sheets.
Token Buybacks as a Treasury Strategy
Hyperliquid has already spent more than $644 million to buy back 21.36 million HYPE tokens, showcasing a long-term commitment to ecosystem stability. The platform’s revenue surged 13.69% to $1.2 billion, and the value of assets on-chain increased 16.5% to $1.28 billion.
These treasury strategies not only aim to boost investor confidence but also help stabilize token prices amid volatile market conditions. Even with bearish sentiment reflected by a Fear & Greed Index of 27, the HYPE token is trading above its 200-day moving average, suggesting resilient long-term support.
Perpetuals Market Dominance
Hyperliquid continues to dominate the decentralized derivatives market, particularly in perpetual futures trading, or “perps.” These contracts allow users to trade digital assets with leverage around the clock without expiration dates.
In October alone, decentralized perps volume reached $1 trillion, shattering September’s $772 billion record. Hyperliquid led the pack with $317.6 billion in trading volume, far ahead of rivals like Lighter ($255.4B), Aster ($177.6B), and edgeX ($60.6B). It now holds a commanding 70% share of this sector.
This dominance is not just about volume. Hyperliquid also set records with $248 billion in 24-hour trading volume in May 2025 and $106 million in revenue in August, confirming its leadership in decentralized derivatives.
CoinLaw’s Takeaway
In my experience, it’s rare to see such a coordinated, well-capitalized effort to dominate a DeFi market through token buybacks and treasury strategy. Hyperliquid Strategies is not just investing in its ecosystem. It’s essentially signaling to the market that HYPE is more than just a trading token, it’s a foundation for growth. The fact that the platform is outperforming in a bearish environment and backing that strength with significant capital speaks volumes. I found the level of commitment here to be unusually strong and, frankly, a model others in the space might start to follow.
