Paradigm and Galaxy Back $888M Biotech Merger Pivoting to Crypto Treasury Strategy

Sonnet BioTherapeutics, a Nasdaq-listed biotech firm, has entered a definitive merger agreement with Rorschach I LLC, a new entity backed by Atlas Merchant Capital and crypto investors including Paradigm Ventures. The merged company, rebranded as Hyperliquid Strategies Inc. (HSI), will shift focus to building a crypto treasury anchored by the HYPE token.

Upon closing, HSI will hold 12.6 million HYPE tokens ($583 million valuation) and $305 million in fresh capital, creating an $888 million crypto-native treasury entity. Strategic investors include Paradigm, Galaxy Digital, Pantera Capital, and Republic Digital. The company will maintain its Nasdaq listing under a new ticker.

Leadership will transition to Atlas Merchant Capital executives, with Bob Diamond as Chairman and David Schamis as CEO. The move signals growing institutional interest in crypto treasury strategies, blending traditional finance infrastructure with digital asset management.