Sonnet BioTherapeutics, Inc. has announced a deal to merge with Rorschach I LLC for $888 million. Rorschach is associated with Atlas Merchant Capital LLC. This merger aims to build a large reserve of HYPE, the native crypto for the Hyperliquid layer-1 blockchain. The merger will create a new entity, Hyperliquid Strategies Inc. (HSI), which will hold about 12.6 million HYPE tokens worth $583 million, and it will have at least $305 million in cash.
A Hyperliquid Treasury
HSI will combine the expertise of Atlas Merchant Capital with support from known investors like Paradigm, Galaxy Digital, and Pantera Capital. HSI plans to use the $305 million in cash to buy more HYPE tokens, aiming to create one of the largest reserves of this token.
This strategy helps Sonnet maximize its efforts in the digital asset market while continuing to develop its biotech products. After the merger, Bob Diamond, from Atlas, will become Chairman of the Board, and David Schamis will be the CEO of HSI. The new company will be listed on the Nasdaq under a new ticker symbol.
This merger brings several benefits, including strong financial backing with a total value of $888 million. Working with Atlas Merchant Capital and other investors provides HSI with a unique opportunity for growth. The deal is expected to close in the second half of 2025, pending approval from Sonnet’s shareholders and standard closing requirements.
The Crypto Space Sees More Mergers
Meanwhile, the crypto space has witnessed more partnerships recently. For instance, in May 2025, Nasdaq-listed online marketing company SharpLink Gaming (SBET) announced that it had secured a $425 million private investment (PIPE) through selling 69.1 million shares at $6.15 per share.
The public company intends to channel this million-dollar stash into Ethereum’s ETH. SharpLink inked a partnership with Consensys, an Ethereum-focused software company, as its lead investor. Top crypto firms and infrastructure providers, including ParaFi Capital, Electric Capital, and Pantera Capital, also joined the investment round.
Parataxis Holdings also acquired South Korea’s Bridge Biotherapeutics for $18.5 million on June 20, 2025, to create a Bitcoin treasury platform, showing a shift toward digital assets.
Sonnet BioTherapeutics’ merger will close in late 2025 and has already driven SONN’s stock up by 290%, showing strong market interest in such hybrid ventures. This shift highlights a growing trend of biotech firms adopting cryptocurrency to diversify and create value for shareholders.
