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Why Is Sonnet BioTherapeutics Stock (SONN) Up 180% Today?

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U.S.-based biotech company Sonnet BioTherapeutics’ stock has surged over 180% in pre-market trading hours.

Why Is Sonnet BioTherapeutics Stock (SONN) Up 180% Today?

Sonnet BioTherapeutics’ (SONN) stock surged over 180% in pre-market trading after the company revealed plans for an $888 million crypto deal, primarily focused on managing and investing in HYPE tokens. This major shift positions the biopharma firm to pivot into the cryptocurrency space, significantly boosting its balance sheet and market profile.

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Sonnet BioTherapeutics is a biotech company that develops biological medicines using a special platform.

More Details About the Deal

Sonnet has signed a definitive agreement with Rorschach I LLC to form Hyperliquid Strategies Inc. Notably, Rorschach I LLC is a newly formed company backed by an entity linked to Atlas Merchant Capital LLC, an affiliate of Paradigm Operations LP, along with other sponsors. The new company will hold around 12.6 million HYPE tokens, currently valued at $583 million, along with at least $305 million in cash at the time of closing.

For context, HYPE tokens are the main cryptocurrency used on Hyperliquid, a fast and decentralized platform for trading futures.

The deal involves top crypto investors like Paradigm, Galaxy Digital (GLXY), Pantera Capital, D1 Capital, Republic Digital, and 683 Capital. Once the transaction is complete, Hyperliquid will stay listed on Nasdaq but will trade under a new ticker symbol.

The parties said the cash proceeds will help Hyperliquid buy more HYPE tokens, building one of the largest strategic reserves of HYPE. Over the past year, Hyperliquid has handled more than $1.5 trillion in perpetuals trading volume and recently hit a record $11.3 billion in open interest.

Year-to-date, SONN stock has gained over 250%.

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