HYPE token price jumps 10% after $1B accumulation news and Robinhood listing
The price of the Hyperliquid (HYPE) token rose 10% after Robinhood listing and $1 billion treasury announcement.
- HYPE token price rose 10% after Robinhood announced its listing
- The same day, Hyperliquid Strategies filed for a $1 billion treasury raise
HYPE token price surged over 10% on October 23, after two major catalysts converged. For one, trading platform Robinhood officially enabled spot trading for Hyperliquid, giving it access to millions of users. The market reaction was immediate, with the token briefly crossing the $40 mark.
The same day as the listing news, Hyperliquid Strategies filed an S-1 registration statement with the U.S. Securities and Exchange Commission for a stock offering. The company is seeking to sell up to 160 million shares through an equity facility with Chardan Capital Markets, potentially enabling it to raise as much as $1 billion.
According to the SEC filing, the treasury firm will use the funds raised for general corporate purposes. The firm, trading on the Nasdaq under the ticker HSI, will also use the funds to purchase Hyperliquid (HYPE) tokens, potentially boosting its price further.
Why HYPE token price jumped 10%
Hyperliquid’s current crypto market cap is just $13.24 billion, which makes $1 billion in funding significant. A purchase of more than 7.5% of its supply would have a significant impact on demand and could push up the price significantly.
Still, Hyperliquid Strategies may not be able to raise the full $1 billion in funding. What is more, the firm is not under a strict obligation to use the full proceeds to buy HYPE tokens. Still, the firm’s pivot to a treasury strategy suggests that the bulk of the funding will go toward buying hyperliquid tokens.
Hyperliquid Strategies Inc. was formed as a result of a merger between Sonnet BioTherapeutics and Rorschach I LLC in a $888 million deal. The firm received backing from Atlas Merchant Capital LLC and other partners.
