Wall Street’s Corporate Crypto Treasuries Expand to Altcoins as Hyperliquid’s HYPE Gains Institutional Backing

Wall Street’s enthusiasm for crypto treasury management is moving beyond Bitcoin, with a growing number of companies backing altcoins like Hyperliquid’s HYPE token. Yet analysts remain divided over its near-term growth potential.

Michael Saylor’s once-controversial strategy of using corporate treasury funds to buy Bitcoin has now gone mainstream. According to a recent Wall Street Journal report, U.S. companies have raised over $85 billion so far in 2025 to invest in cryptocurrencies — more than double this year’s total capital raised via U.S. IPOs.

Unlike 2020, when MicroStrategy was a lone pioneer selling shares to buy bitcoin, today’s corporate crypto push spans diverse sectors — from toy manufacturers to semiconductor producers — supported by institutional capital. Major firms like Capital Group, Galaxy Digital, and D1 Capital are backing companies raising funds specifically to acquire digital assets. This surge extends beyond Bitcoin, targeting higher-risk, higher-reward altcoins as well.

A leading example is Hyperliquid Strategies Inc. (HSI), a newly formed public crypto treasury company focused on building a substantial reserve of HYPE, the native token of the Hyperliquid blockchain.

Formation of Hyperliquid Strategies Inc.: The Atlas and Sonnet Merger

HSI was unveiled on July 14, when Sonnet BioTherapeutics (SONN) announced a reverse merger with Rorschach I LLC, a special purpose acquisition vehicle backed by Atlas Merchant Capital, Paradigm, and other notable crypto investors. Post-merger, Sonnet will pivot to become Hyperliquid Strategies Inc., a Nasdaq-listed entity dedicated to a corporate treasury strategy focused exclusively on accumulating HYPE, rather than Bitcoin or Ethereum.

At closing, HSI will hold 12.6 million HYPE tokens valued at approximately $583 million, with plans to invest an additional $305 million acquiring more tokens on the open market. If fully executed, HSI’s holdings will rank among the largest institutional reserves of a single altcoin disclosed publicly.

Atlas CEO Bob Diamond, former Barclays chief, will chair HSI and emphasized that the opportunity is not only financial but strategic. “We think HYPE is pretty special,” Diamond said, highlighting the company’s blend of crypto-native expertise and traditional financial leadership as a competitive advantage.

Paradigm co-founder Matt Huang noted rising institutional demand for Hyperliquid, while acknowledging that direct U.S. access to HYPE remains limited.

While Sonnet will continue managing its biotech operations as a subsidiary, it plans to divest non-core assets. Existing Sonnet investors will receive contingent value rights (CVRs) linked to its therapeutic portfolio.

HSI’s board will feature Bob Diamond and Eric Rosengren, former Boston Fed president, alongside new financial executives. Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital are backing the deal, which is expected to close in late 2025.

Understanding Hyperliquid and the HYPE Token

Launched in 2023, Hyperliquid is a high-performance layer-1 blockchain paired with a decentralized exchange (DEX) designed to combine centralized exchange speed and DeFi transparency.

It consists of two main layers:

• HyperCore: Supports rapid spot and perpetual futures trading with on-chain order books, handling over 200,000 orders per second.
• HyperEVM: An Ethereum-compatible smart contract layer that enables developers to build DeFi apps integrated with HyperCore liquidity.

HYPE, Hyperliquid’s native token, powers staking, governance, trading incentives, and value capture across the ecosystem. It ranks as the 15th largest cryptocurrency by market cap and the network has processed over $1 trillion in cumulative trading volume.

Analyst Views: Solid Fundamentals Amid Mixed Sentiment

Despite institutional interest and a recent rally—from a low near $37.41 to just under $50 on July 14—opinions on HYPE’s near-term valuation differ.

Crypto analyst “McKenna” recently suggested HYPE remains undervalued. Using a sales-weighted price-to-earnings (SWPE) metric based on trailing 30-day revenue (~$3.2 million), he estimated a fair price around $77, reflecting the token’s valuation multiple during its last peak.

Conversely, “Altcoin Sherpa” expressed caution. While acknowledging HYPE’s strong fundamentals—active user base, sound tokenomics, and capable team—he viewed the sharp rise from $9 to over $40 as largely priced in. Holding a small staking position for the long term, he recommended waiting for a notable pullback before adding exposure.

This divergence highlights the tension between HYPE’s solid revenue performance and the risk of short-term overextension driven by hype and speculative flows.

Altcoin Corporate Treasuries: A New Era

Whether HYPE continues its upward momentum or cools off, Hyperliquid Strategies Inc. represents a pivotal shift in corporate crypto treasury strategies. Unlike past models centered on Bitcoin as a reserve asset, HSI is pioneering concentrated institutional investment in a single altcoin that launched just two years ago.

With total commitments exceeding $888 million in tokens and cash, HSI resembles a thematic crypto fund but with public market accessibility and institutional governance.

If successful, this approach could inspire more companies to raise capital for focused crypto bets on tokens poised to lead the next phase of digital finance innovation.