Hyperliquid Strategies applies for an IPO to raise $1 billion to build a HYPE treasury, and the coin price rises by 8%.

Hyperliquid Strategies has submitted an S-1 registration statement to the SEC, seeking to raise up to $1 billion through a public offering to expand its Hyperliquid (HYPE) Token treasury. This move highlights the trend of publicly listed companies incorporating encryption assets and protocol participation into their strategies. The entity was formed by the merger of Sonnet BioTherapeutics and SPAC Rorschach I LLC, and plans to list on Nasdaq. Although the HYPE Token surged 8% after the announcement and benefited from protocol buybacks supporting the price, the market is closely watching the potential short-term downward pressure from the monthly unlocking of 10 million HYPE tokens starting in November.

Institutional Capital Entry: Hyperliquid Strategies Seeks NASDAQ Listing

Hyperliquid Strategies's S-1 Registration Statement marks a deep involvement of traditional finance in DeFi protocols assets through innovative structures, with HYPE Token becoming the new focus of corporate treasury.

· Fundraising plan of 1 billion USD: Hyperliquid Strategies plans to issue up to 160 million shares of common stock through a committed equity financing mechanism with Chardan Capital Markets LLC, potentially raising up to 1 billion USD.

· SPAC merger to establish a digital asset treasury: This entity is part of the proposed merger between Nasdaq-listed company Sonnet BioTherapeutics Holdings Inc. and SPAC Rorschach I LLC, aimed at establishing a digital asset treasury focused on HYPE Token.

· Use of funds and Token accumulation: The company plans to use potential earnings for general corporate purposes, including the possible purchase of HYPE tokens after the completion of the merger. The company currently holds approximately 12.6 million HYPE.

· Listing and Industry Trends: Hyperliquid Strategies has applied for listing on the Nasdaq Capital Market (stock code pending). Its move joins companies like Eyenovia and Lion Group Holding that have included HYPE on their balance sheets, reflecting an increasing interest from public companies in cryptocurrency treasury assets.

Positive Response of HYPE Token: Resonance of Buybacks and Institutional Interest

The interest of institutions combined with the positive initiatives of the Hyperliquid protocol have jointly driven up the price of HYPE Token and enhanced user trust.

· Prices surged: The announcement of Hyperliquid Strategies has boosted the momentum of HYPE Token, with its value increasing by over 8% in the past 24 hours, reaching a trading price of $38.26.

· Protocol buyback support price: Hyperliquid has been leading the protocol buyback trend for 2025. The buyback plan can reduce selling pressure and indicates a long-term commitment to the ecosystem.

· Buyback data is impressive: So far, the project has spent over 644.64 million USD in revenue to buy back 21.36 million HYPE tokens, demonstrating its commitment to maintaining community value.

Supply Risks and Long-term Confidence: The Challenges of Token Unlocking and Analysts' Optimism

Despite the strong repurchase activity and institutional support providing long-term confidence, the upcoming Token unlock remains a potential selling pressure that the short-term market needs to digest.

· Upcoming supply shock: Starting from November, approximately 10 million HYPE Tokens will be unlocked each month until the end of October 2027. The increase in supply typically triggers market volatility, which may lead to downward pressure.

(Source: Messari)

· Analysts' optimistic expectations: Analysts remain optimistic about the prospects of HYPE, believing that the team's unlocking is the most bullish event in Q4. They believe that the Hyperliquid team is focused on long-term growth, and whether through relocking or staking, the team's decisions will benefit the long-term value of HYPE.

· Unlocking will test short-term sentiment: Although unlocking will test short-term market sentiment, the project's strong buyback activities and institutional momentum indicate a sustained confidence in the long-term potential of HYPE.

Hyperliquid Technical Upgrade and Ecosystem Progress

In order to cope with the increasingly fierce competition in the Perp DEX track, Hyperliquid is also actively building projects, achieving several significant advancements in October.

• HIP-3 Upgrade: Hyperliquid successfully enabled the HIP-3 network upgrade on October 13, allowing the creation of permissionless perpetual contract markets. This greatly enhances the flexibility of the ecosystem, allowing users to customize trading pairs and create new financial instruments.
• Vaults Ecosystem: The Vaults ecosystem on Hyperliquid is thriving, providing investors with a unique way to participate in on-chain derivative strategies executed by professional managers. Several leading vaults have performed outstandingly, attracting market attention.
• Social Trading App Aura: The HIP-3 upgrade has also spawned the mobile social encryption application Aura, aimed at turning trading into a social activity and enhancing interaction among users.
• On-chain activities of L1: The on-chain activities of Hyperliquid L1 remain active, with the total value locked (TVL) and trading volume maintained at a high level.

Conclusion

Hyperliquid Strategies' move to seek a Nasdaq listing and raise funds on a large scale to purchase HYPE Token is a milestone in the institutionalization process of the cryptocurrency sector. This not only provides strong institutional backing for HYPE Token but also opens new avenues for traditional finance to enter DeFi protocol assets. Although investors need to be cautious about the potential short-term selling pressure from the monthly token unlocks starting in November, the protocol's ongoing buyback mechanism and institutions' long-term optimism provide solid support for HYPE. This deep integration of institutions into DeFi assets indicates that the cryptocurrency market is moving towards a more mature and capital-intensive stage of development.

Disclaimer: This article is for informational purposes only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make decisions cautiously.