Hyperliquid Strategies’ $1B Accumulation Boosts HYPE Price by 12%

Key Points

• HYPE, Hyperliquid’s native cryptocurrency, saw a 12% increase following a $1 billion acquisition plan by Hyperliquid Strategies.
• The HYPE price recovery is linked to a major treasury announcement, indicating potential for further rally.

Despite the decline in the wider crypto market on October 23, HYPE, the native cryptocurrency of the Hyperliquid decentralized exchange (DEX), experienced a significant 12% increase. This surge in HYPE price comes after Hyperliquid Strategies announced a $1 billion acquisition plan. This announcement has spurred a recovery in DEX altcoins from their weekly lows of $34.

HYPE Price Recovery: The Details

At the time of reporting, HYPE, Hyperliquid’s native cryptocurrency, was trading 12% higher at $38.92, rebounding from the support level of $35. Currently, the altcoin is testing the key weekly resistance level, and breaking past this could set the stage for a further rally.

The HYPE price surge coincides with a 20% increase in daily trading volumes to $690 million, indicating strong trading activity. According to CoinGlass data, HYPE futures open interest has risen by 20% to $1.55 billion, suggesting that investors and traders are optimistic about future price movements.

The market has been volatile over the past week, largely due to news of token unlocking that has created market fear. However, the development of a $1 billion HYPE treasury has sparked renewed optimism among traders. HYPE had been under pressure following the ASTER token rally in September, which attracted significant attention.

The HYPE price is showing signs of a potential bullish breakout from the descending channel pattern. If this pattern is broken, it could pave the way for a sustained rally, potentially reaching its all-time high of $60.

Hyperliquid’s Expansion and Acquisition Plans

Hyperliquid, a decentralized crypto exchange, is focusing on expanding its perpetual market through the rollout of Hyperliquid Improvement Proposal 3 (HIP-3). The upgrade aims to strengthen Hyperliquid’s infrastructure and optimize deployment efficiency across its perpetual trading markets.

Hyperliquid Strategies has submitted a filing to the US SEC to raise up to $1 billion through a new equity offering. The objective of this offering is to strengthen its balance sheet and support a strategic accumulation of HYPE tokens.

According to the S-1 filing, the company plans to issue up to 160 million shares of common stock via a committed equity facility with Chardan Capital Markets. Proceeds from the offering will be used for general corporate operations and potential token purchases.

The firm was established through an ongoing merger between Nasdaq-listed Sonnet BioTherapeutics and special-purpose acquisition company Rorschach I LLC. The combined entity will list on Nasdaq later this year under a new ticker symbol.

The leadership team will be headed by former Barclays CEO Bob Diamond, as Chairman, with David Schamis as Chief Executive Officer.