What’s Next for Hyperliquid’s HYPE Token? Wall Street and Analyst Perspectives

TL;DR

• Wall Street has raised over $85 billion for corporate crypto treasury strategies, inspired by Michael Saylor’s Bitcoin approach.
  
• Hyperliquid Strategies Inc. (HSI) will hold more than $583 million in HYPE tokens, with plans to buy an additional $305 million.
  
• HSI was created via a reverse merger with Sonnet BioTherapeutics (SONN), becoming a publicly listed crypto treasury company.
  
• Analysts are split: some see HYPE rising to $77 based on revenue multiples; others expect a near-term cooling-off.
  

Wall Street’s Crypto Treasury Rush Expands to Altcoins

Wall Street firms have raised more than $85 billion by 2025 to pursue cryptocurrency treasury strategies, echoing Michael Saylor’s pioneering Bitcoin strategy at MicroStrategy. Unlike 2020, when Saylor was a lone trailblazer, a growing wave of companies—from tech to consumer goods—are following suit with institutional support from firms like Capital Group, Galaxy Digital, and D1 Capital.

This trend is broadening beyond Bitcoin and Ether to include altcoins with higher risk-reward profiles.

How Hyperliquid Strategies Inc. Was Formed

On July 14, Sonnet BioTherapeutics (SONN) announced a reverse merger with Rorschach I LLC, backed by Atlas Merchant Capital, Paradigm, and other crypto investors. This merger converts Sonnet into Hyperliquid Strategies Inc. (HSI), a Nasdaq-listed firm focused on building a crypto treasury reserve—not of Bitcoin, but of the altcoin HYPE, native to the Hyperliquid blockchain.

HSI will initially hold 12.6 million HYPE tokens, valued at approximately $583 million, and plans to invest at least $305 million more to acquire HYPE on the open market. This creates one of the largest institutional reserves of a single altcoin to date.

Institutional Backing and Strategic Vision

Bob Diamond, former Barclays CEO and current Atlas CEO who will chair HSI, praised HYPE as “quite special,” highlighting Hyperliquid’s unique proposition combining blockchain innovation and traditional finance.

Matt Huang, Paradigm co-founder, called Hyperliquid a protocol with “real fundamentals,” citing strong product-market fit, rapid user growth, and institutional demand. Huang noted US access to HYPE remains limited, making HSI a critical treasury reserve and investor gateway.

What is Hyperliquid and the HYPE Token?

Hyperliquid launched in 2023 as a high-performance Layer 1 blockchain and decentralized exchange (DEX). It merges the speed and UX of centralized exchanges with decentralized finance (DeFi) transparency and permissionless access.

• HyperCore: The layer enabling ultra-fast spot and perpetual futures trading, processing over 200,000 orders per second.
  
• HyperEVM: An Ethereum-compatible smart contract layer allowing DeFi apps to utilize HyperCore liquidity.
  

HYPE is the native token used for staking, governance, trading incentives, and value capture in the ecosystem. Currently, HYPE ranks as the 15th largest cryptocurrency by market cap, with Hyperliquid processing over $1 trillion in cumulative volume.

Analyst Views: Bullish Fundamentals vs. Near-Term Caution

Despite a strong run from $37.41 to nearly $50 earlier in July, HYPE traded at about $42.77 on July 27, down 3.69% in 24 hours (CoinDesk data).

• Cryptocurrency analyst McKenna suggests HYPE is undervalued based on revenue multiples, estimating a fair price of $77 if it trades at previous peak valuations given its 30-day average revenue of $3.2 million. His valuation employs the Sales-Weighted Price-Earnings (SWPE) ratio, a standard for assessing token market caps relative to revenue.
  
• On the other hand, Altcoin Sherpa, a respected commentator, praised HYPE’s fundamentals but warned that its rapid rise likely exhausted short-term upside. He maintains a small long-term stake but is waiting for a price correction before accumulating more.
  

These diverging views illustrate the tension between strong institutional backing and the volatility and sentiment-driven dynamics of altcoin markets.

Institutional Crypto Treasury Strategies Evolve

The formation of Hyperliquid Strategies Inc. marks a shift in corporate crypto treasury models. Unlike prior efforts focused on Bitcoin as a reserve asset, HSI is betting heavily on a single altcoin launched just two years ago.

With over $888 million in combined HYPE token holdings and cash commitments, HSI resembles a public thematic crypto fund with institutional governance.

If successful, this model could inspire more companies to raise capital specifically to build concentrated positions in tokens they believe will shape the future of decentralized finance.

The Data

Please leave this field empty

Endroid got you covered 👋
Get news about crypto, AI and tech straight to your mail box

Sign up to receive awesome content in your inbox, every week.

We don’t spam! Read our privacy policy for more info.

Check your inbox or spam folder to confirm your subscription.