What to know:

Hyperliquid Strategies, a new digital asset treasury company, has officially filed an S-1 registration statement with the U.S. Securities and Exchange Commission, signaling its intent to raise $1 billion for general purposes, including the accumulation of Hyperliquid's native token HYPE.

Hyperliquid Strategy is a merger-in-progress involving Nasdaq-listed biotech firm Sonnet BioTherapeutics and a special purpose acquisition firm, Rorschach I LLC. The impending crypto treasury company will focus on the Hyperliquid ecosystem.

The company plans to issue up to 160 million shares of common stock, with Chardan Capital Markets acting as the financial advisor for this fundraising effort, according to a Wednesday filing.

"In addition to its HYPE token accumulation strategy, to further enhance Pubco’s ability to generate income and seek to create value for Pubco’s shareholders, it aims to deploy its HYPE token holdings selectively, primarily through staking substantially all of its HYPE holdings, which Pubco expects will generate ongoing staking rewards," the company said in its filing.

The proceeds of the fundraise will be used to bolster the treasury holdings of Hyperliquid's HYPE token.

Currently, the treasury holds 12.6 million HYPE tokens and $305 million in cash, with plans to build on this foundation as the company scales its operations in the growing decentralized finance landscape.