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Hyperliquid Strategies Inc. has filed for a $1 billion U.S. IPO to raise capital for acquiring and staking HYPE tokens, mirroring the treasury strategy pioneered by MicroStrategy with Bitcoin.
According to its S1 registration statement with the U.S. Securities and Exchange Commission (SEC), the firm plans to issue up to 160 million shares of common stock with Chardan Capital Markets serving as the financial advisor for the offering. The primary objective of the IPO is to raise funds that will be used to acquire and stake additional Hyperliquid HYPE holdings inflow enhancing yield generation through staking rewards.
Hyperliquid Strategies currently manages 12.6 million HYPE tokens alongside $305 million in cash underscoring its strong liquidity base. The proposed capital injection aims to expand its Hyperliquid HYPE holdings inflow creating a long term strategy for growth and sustained ecosystem participation.
The filing comes shortly after an $888 million reverse merger between Nasdaq listed Sonnet BioTherapeutics and Rorschach I LLC which will form Hyperliquid Strategies Inc. (HSI) upon completion. Once finalized, HSI will use the new structure to streamline treasury management and further expand Hyperliquid HYPE holdings inflow through diversified accumulation and staking operations.
However, the company’s filing highlighted potential risks such as regulatory scrutiny and shareholder dilution noting that existing Sonnet investors will retain just 1.2% of the new entity. Despite these challenges, analysts view the IPO as a bullish development for the Hyperliquid ecosystem.
“HSI’s action signals strong bullish momentum for HYPE.,” said Shivam Thakral, CEO of BuyUCoin, in a statement to Decrypt.
“Institutional accumulation via this new digital asset treasury could substantially boost inflows into Hyperliquid’s HYPE holdings reinforcing scarcity and strengthening long term market confidence.”
The HYPE token surged 10% in the past 24 hours trading near $38 as investors responded to the IPO announcement. Despite the rise, HYPE remains below the 0.618 Fibonacci retracement level ($44–$45), the zone where it traded prior to the October 10 market wide sell off triggered by renewed trade tensions.
Momentum indicators suggest that the downtrend is losing strength with buyers defending the 0.382 Fib level ($36.5). The token is consolidating just below the descending trendline signaling potential accumulation.
A breakout above the $40–$41 region aligned with the 20-day SMA and key resistance levels could confirm a shift in structure. Such a move would likely accelerate the Hyperliquid HYPE holdings inflow driving a retest of the $44–$45 resistance zone and possibly paving the way for renewed bullish momentum across the market.
The expanding Hyperliquid HYPE holdings inflow from institutional and treasury based investors underscores a growing conviction that HYPE’s ecosystem is evolving into a sustainable yield generating network. With the upcoming IPO and merger completion, Hyperliquid Strategies Inc. appears positioned to redefine how corporate treasuries engage with digital asset staking and long term accumulation.
