Whales are ramping up long positions in HYPE after Hyperliquid Strategies announced a $1 billion plan to expand its holdings.
Specifically, a major whale wallet identified as 0x082e has been aggressively building leveraged long positions in HYPE, the token powering the decentralized exchange Hyperliquid.
According to blockchain data, the trader initiated a 5x leveraged position at an average price of $38.85. Consequently, they now hold more than 1 million HYPE tokens, with a total value of approximately $40.92 million.
With HYPE currently trading near $40.20, the whale sits on an unrealized profit of approximately $1.38 million. Moreover, the liquidation price for the position is set at $22.34, suggesting a high-risk, high-conviction bet on continued upside.
Market data from CoinMarketCap shows that the token has gained over 10% in the last 24 hours, pushing its market capitalization to $13.45 billion. This jump has propelled HYPE to become the 11th-largest cryptocurrency worldwide, cementing its presence among major digital assets.
Hyperliquid Strategies Targets $1B Equity Raise
The increased trading activity coincides with Hyperliquid Strategies’ move to raise $1 billion through a new equity offering. The firm has filed an S-1 registration with the U.S. Securities and Exchange Commission (SEC) to issue up to 160 million common shares via Chardan Capital Markets.
The proceeds will be used to strengthen the company’s balance sheet and to support its ongoing operational activities. Additionally, they will enable the strategic expansion of the company’s holdings of HYPE tokens.
Corporate Merger Nears Completion
The funding initiative comes as Hyperliquid Strategies moves toward the final stage of its merger with Sonnet BioTherapeutics and the special-purpose acquisition company Rorschach I LLC.
The merger is anticipated to close later this year. Upon completion, the combined entity will commence trading on Nasdaq under a new ticker, which has yet to be disclosed.
Leadership appointments have already been confirmed. For instance, former Barclays CEO Bob Diamond will serve as Chairman, while David Schamis assumes the role of Chief Executive Officer.
The merged company reportedly holds 12.6 million HYPE tokens and $305 million in cash. These funds will primarily support staking activities to generate long-term yield.
Bitcoin Short Signals Divergent Market Sentiment
Meanwhile, blockchain analytics firm Lookonchain reported a separate development on the Hyperliquid exchange. A trader operating under the wallet address 0xdDc7 has opened a 40x short position on Bitcoin, worth approximately $31.84 million.
Specifically, the whale entered at $109,560 per BTC and set a liquidation price of $118,344. With Bitcoin currently trading around $110,969, the short is in unrealized loss.
Interestingly, data shows this wallet has completed 20 trades on the platform, maintaining an 80% win rate and total profits of $8.7 million.
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