Massive deal sends biotech stock rallying 367%

Massive deal sends biotech stock rallying 367% originally appeared on TheStreet.

The Sonnet BioTherapeutics (NASDAQ: SONN) stock surged 367% to hit as high as $19 on July 14 as the biotech company announced that it has decided to merge with Rorschach I LLC.

Rorschach I is a newly formed company by an entity affiliated with Atlas Merchant Capital LLC, an affiliate of Paradigm Operations LP.

The new company, Hyperliquid Strategies, will transform into a crypto treasury company that is expected to stack HYPE, the native token of the Hyperliquid blockchain network.

The layer-1 blockchain empowers decentralized finance (DeFi) applications focused on trading of perpetual futures and other financial primitives.

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Hyperliquid Strategies is expected to hold 12.6 million HYPE tokens, valued at $583 million shortly before the agreement was signed, and $305 million in cash, to be used to acquire more HYPE tokens in the future.

The deal closed for a total assumed value of $888 million. It involved participation from prominent strategic investors, including Paradigm, Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital.

Largest public company to hold HYPE

The statement read that the new company expects to become the largest publicly listed company in the U.S. to hold HYPE in its treasury.

The biotech firm's strategic pivot is reflective of the broader trend among companies to acquire cryptocurrency as a reserve asset to add to their balance sheets.

Sonnet will continue to operate but as a wholly owned subsidiary of Hyperliquid Strategies and will continue focusing on existing assets and business lines. The company's stock was exchanging hands at $13.31 at the time of writing.

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Atlas co-founder and CEO Bob Diamond will become Hyperliquid Strategies' chairman, who said:

“We believe HYPE and the Hyperliquid protocol represent a truly differentiated offering within the digital asset space. We believe Hyperliquid Strategies will be well placed to maximize these opportunities because of our unique team of investors and operators with deep, relevant crypto and financial services experience.”

Investors in the new entity, when it goes public, will gain indirect exposure to HYPE.

With a market cap of $16 billion, HYPE is the eleventh-largest cryptocurrency. Riding the crypto rally, it has surged more than 20% within a week. In fact, the cryptocurrency has surged more than 1,400% over the last year.

HYPE was trading at $48.36 at press time.

Story ContinuesMassive deal sends biotech stock rallying 367% first appeared on TheStreet on Jul 14, 2025

This story was originally reported by TheStreet on Jul 14, 2025, where it first appeared.

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