Sonnet BioTherapeutics Shares Surge 260% After Crypto Deal
Shares of the biopharmaceutical company Sonnet BioTherapeutics surged sharply after the announcement of a merger with an $888 million organization aiming to enter the cryptocurrency market.
Sonnet’s shares, which closed at $5.17 on Friday, jumped to $18.68 before the market opened (an increase of 265%). Since the start of the year, SONN shares have risen by more than 220%, though today their price corrected by about 2% down.
Daily price chart of SONN shares. Source: Google Finance.
This surge was driven by Sonnet’s agreement with Rorschach I LLC, backed by Atlas Merchant Capital and Paradigm Operations, to form a new company called Hyperliquid Strategies Inc.
Effectively, the deal will transform Sonnet into a publicly traded crypto treasury company specializing in holding and increasing reserves of HYPE tokens.
Under the terms of the agreement, Hyperliquid Strategies will hold approximately 12.6 million HYPE tokens valued at around $583 million, as well as at least $305 million in cash. The total value of the deal is estimated at $888 million.
In addition to the initial reserves in HYPE and cash, Hyperliquid Strategies plans to use its capital to acquire even more HYPE tokens.
The deal is expected to close in the coming months, pending regulatory and shareholder approval.
See also: "U.S. Democrats Declare ‘Crypto Corruption Week’ Against Trump"
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