“A $2 billion crypto deal involving President Donald Trump's family and a foreign government is threatening to derail bipartisan stablecoin legislation that Congress has been working on for months,” a...

Investing.com -- Sonnet BioTherapeutics (NASDAQ:SONN) stock skyrocketed 290% following the announcement of an $888 million business combination that will transform the company into a cryptocurrency treasury focused on HYPE tokens. The biopharmaceutical company has entered into a definitive agreement with Rorschach I LLC, a newly-formed entity backed by Atlas Merchant Capital and Paradigm Operations LP, to create Hyperliquid Strategies Inc. The new entity is expected to hold approximately 12.6 million HYPE tokens, valued at $583 million, plus gross cash of at least $305 million at closing. The transaction includes participation from prominent crypto investors including Paradigm, Galaxy Digital (TSX:GLXY), Pantera Capital, D1 Capital, Republic Digital, and 683 Capital. Upon completion, the company will remain listed on Nasdaq under a new ticker symbol. Bob Diamond, Co-founder and CEO of Atlas, will become Chairman of the Board while David Schamis, CIO and Co-founder of Atlas, will serve as Chief Executive Officer of the new entity. The company plans to add new board members, including Eric Rosengren, former President of the Boston Fed. "We are delighted by this opportunity to partner with Sonnet in establishing a leading crypto treasury management strategy to ultimately deliver strong value to shareholders," said Diamond. "We believe HYPE and the Hyperliquid protocol represent a truly differentiated offering within the digital asset space." As part of the agreement, Sonnet will raise $5.5 million through a private placement to accredited investors, expected to close on July 14, 2025. Additionally, $2 million in convertible notes sold in June 2025 will convert into shares of convertible preferred stock and warrants. Following the business combination, Sonnet will operate as a wholly owned subsidiary of Hyperliquid Strategies, continuing to develop its biotech assets including SON-1010. Current Sonnet shareholders will receive a CVR related to the biotech assets. The transaction is expected to close in the second half of this year, subject to Sonnet stockholder approval and other customary conditions. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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