Sonnet BioTherapeutics (NASDAQ:SONN) saw its stock soar by 290% after announcing an $888 million business combination that will pivot the company into a cryptocurrency treasury focused on HYPE tokens.
The biopharmaceutical firm has signed a definitive agreement with Rorschach I LLC, a newly formed entity backed by Atlas Merchant Capital and Paradigm Operations LP, to establish Hyperliquid Strategies Inc. This new company is projected to hold about 12.6 million HYPE tokens valued at $583 million, along with at least $305 million in gross cash at the time of closing.
Notable crypto investors such as Paradigm, Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital are participating in the deal. After closing, the company will continue trading on Nasdaq under a new ticker.
Bob Diamond, Co-founder and CEO of Atlas, will take the role of Chairman of the Board, while David Schamis, Atlas CIO and Co-founder, will serve as CEO of the new entity. The company also plans to bring on additional board members, including Eric Rosengren, former President of the Boston Fed.
“We are delighted by this opportunity to partner with Sonnet in establishing a leading crypto treasury management strategy to ultimately deliver strong value to shareholders,” Diamond said. “We believe HYPE and the Hyperliquid protocol represent a truly differentiated offering within the digital asset space.”
Under the terms of the agreement, Sonnet will raise $5.5 million through a private placement targeting accredited investors, with a closing expected on July 14, 2025. Additionally, $2 million of convertible notes issued in June 2025 will convert into shares of convertible preferred stock and warrants.
After the merger, Sonnet will become a wholly owned subsidiary of Hyperliquid Strategies, maintaining its biotech development efforts including its asset SON-1010. Current Sonnet shareholders will also receive a contingent value right (CVR) related to these biotech assets.
The transaction is anticipated to close in the second half of 2025, pending approval from Sonnet’s shareholders and other customary closing conditions.
Sonnet BioTherapeutics stock price
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