Nasdaq’s Sonnet to Merge With Rorschach, Form $888 Million Crypto Treasury Firm

Sonnet BioTherapeutics, a Nasdaq-listed clinical-stage biotechnology company, said it will merge with Rorschach I LLC in an all-stock deal that values the combined business at about $888 million.

The new entity, Hyperliquid Strategies Inc., will pivot away from drug development to focus on managing digital assets tied to the Hyperliquid Layer-1 blockchain. It plans to hold 12.6 million HYPE tokens and roughly $305 million in cash as a treasury reserve, according to a joint statement issued Monday.

Rorschach I is backed by Atlas Merchant Capital and Paradigm Operations, investors better known for their exposure to financial-services and crypto ventures. Following the transaction, Sonnet shareholders will own a minority stake in Hyperliquid Strategies, whose management said it intends to seek further opportunities in on-chain liquidity provision and token-based financial products.

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