Hyperliquid’s $1B DAT Merger Vote Delayed Two Weeks Due to Low Turnout

Merger Vote Postponed to Ensure Sufficient Shareholder Approval

A crucial shareholder vote required to establish Hyperliquid Strategies, a new digital asset treasury (DAT) designated for accumulating and holding HYPE tokens, has been postponed by two weeks. This vote is essential for finalizing the merger between Nasdaq-listed Sonnet BioTherapeutics and Rorschach I LLC, an entity associated with Atlas Merchant Capital and Paradigm Operations.

David Schamis of Hyperliquid Strategies announced the delay on Tuesday, stating that the firm still needs over 50 percent of Sonnet's outstanding shares to vote in favor of the deal for it to be completed. Although more than 95 percent of the votes cast so far support the merger, the overall voter participation rate remains too low to meet regulatory requirements. The expected closing date has been moved to at least December 2, contingent on sufficient remaining shareholders casting their ballots in time. Schamis expressed confidence that the necessary additional votes will be secured.

Hyperliquid's Vision: Building a Major HYPE Token Treasury

Hyperliquid Strategies intends to become one of the leading token-accumulation treasuries in the market, with a specific focus on HYPE, the native token of the Hyperliquid perpetuals exchange. As part of the merger agreement, the new DAT will acquire existing HYPE holdings from participating investors and combine them with over $305 million in cash. When initially announced in July, the combined assets valued the transaction at approximately $888 million.

In a subsequent filing with the U.S. Securities and Exchange Commission, Hyperliquid Strategies outlined plans to raise up to $1 billion through share sales following the merger's completion. Rorschach I LLC, the acquisition vehicle, was established by an entity linked to Atlas Merchant Capital, an affiliate of Paradigm, which is a significant venture backer of Hyperliquid. Upon completion, the merger will create a publicly traded company whose primary objective will be to hold and accumulate HYPE tokens.

Cooling DAT Markets and the Impact of the Delay

Digital asset treasuries experienced substantial growth earlier this year, as crypto firms and investment vehicles utilized them to raise capital, acquire tokens, and offer structured exposure to on-chain ecosystems. However, a general cooldown in the cryptocurrency market has negatively impacted DAT valuations and slowed the pace of new launches. Several existing treasuries have seen significant declines in their cumulative market capitalization and have resorted to share repurchase programs to support their stock prices.

The current slowdown appears to be influenced by several factors:

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  Lower token prices, which reduce the perceived value of treasury holdings.
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  Weaker retail investor flows compared to the peaks observed mid-year.
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  Macroeconomic uncertainty that affects speculative equity structures.
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  Voter fatigue resulting from repeated shareholder ballots at smaller companies.

Against this market backdrop, the current delay in the vote, even if procedural, occurs in a cautious environment. Nevertheless, the strong preliminary support from participating shareholders indicates a desire for the merger to proceed; the primary challenge is turnout, not overall sentiment.

Next Steps and Investor Watchpoints

Hyperliquid Strategies and its supporters now have a two-week period to secure the necessary votes to finalize the merger. If the merger is successful, the new company is expected to:

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  Hold HYPE tokens and continue accumulating them over time.
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  Utilize up to $1 billion in planned capital raising to expand its treasury.
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  Operate as a publicly traded entity offering indirect HYPE exposure through equity markets.
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  Connect a decentralized exchange token to a regulated stock via a DAT structure.

This model draws inspiration from earlier crypto treasury initiatives but distinguishes itself by concentrating on a single perpetual exchange ecosystem rather than a diversified portfolio of digital assets. Key risks for investors include the volatility inherent in crypto-equity markets, reliance on HYPE's liquidity, regulatory scrutiny of DAT structures, and potential further delays if shareholder participation remains insufficient.

Despite these challenges, Hyperliquid remains one of the most active decentralized perpetuals platforms globally. If the merger moves forward, the resulting treasury could become a prominent institutional holder of HYPE, influencing both token liquidity and investor sentiment.