# EDGAR Filing Document

**Accession Number:** 0002078856
**File Stem:** 0000000000-25-009278
**Filing Date:** 2025-8
**Character Count:** 20102
**Document Hash:** 609a4eee3403cb299946317a3b0b775b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000000000-25-009278.hdr.sgml**: 20260320

**ACCESSION NUMBER**: 0000000000-25-009278

**CONFORMED SUBMISSION TYPE**: UPLOAD

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20250828

**FILED FOR**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Hyperliquid Strategies Inc
- **CENTRAL INDEX KEY:** 0002078856
- **STANDARD INDUSTRIAL CLASSIFICATION:** FINANCE SERVICES [6199]
- **ORGANIZATION NAME:** 09 Crypto Assets
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** UPLOAD
- **SEC FILE NUMBER:** 377-08283

**BUSINESS ADDRESS:**
- **STREET 1:** 477 MADISON AVENUE 22ND FLOOR
- **STREET 2:** C/O HYPERLIQUID STRATEGIES INC
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10022
- **BUSINESS PHONE:** 212-883-4330

**MAIL ADDRESS:**
- **STREET 1:** 477 MADISON AVENUE 22ND FLOOR
- **STREET 2:** C/O HYPERLIQUID STRATEGIES INC
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10022
**PUBLIC REFERENCE ACCESSION NUMBER**: 0001641172-25-021905

## Text-Extract

```

                                                            August 28, 2025

David Schamis
Chief Executive Officer
Hyperliquid Strategies Inc
477 Madison Avenue, 22nd Floor
New York, NY 10022

       Re: Hyperliquid Strategies Inc
           Draft Registration Statement on Form S-4
           Submitted August 1, 2025
           CIK No. 0002078856
Dear David Schamis:

       We have reviewed your draft registration statement and have the
following comments.

        Please respond to this letter by providing the requested information
and either
submitting an amended draft registration statement or publicly filing your
registration
statement and non-public draft submissions on EDGAR. If you do not believe a
comment
applies to your facts and circumstances or do not believe an amendment is
appropriate, please
tell us why in your response.

      After reviewing the information you provide in response to this letter
and your
amended draft registration statement or filed registration statement, we may
have additional
comments.

Draft Registration Statement on Form S-4
Cover Page

1.     Please revise to disclose here, in the Notice of Special Meeting of
Shareholders, and
       in Questions and Answers (i) the number of shares of Pubco Common Stock
offered
       in connection with the Business Combination, (ii) the price per share of
the Pubco
       Common Stock, (iii) the value of the consideration that the Sonnet
stockholders, the
       Advisor, and Rorschach are receiving in connection with the Business
Combination,
       and (iv) the aggregate value of the consideration that Sonnet
stockholders are
       receiving.
2.     Please revise to disclose the ownership percentage of Pubco Common Stock
following
       the Business Combination by the Sonnet stockholders, PIPE Subscribers,
Rorschach
       equity holders, and the Advisor, respectively at Closing on a
fully-diluted basis. To
 August 28, 2025
Page 2

       the extent the ownership percentages provided elsewhere are not
presented on a fully-
       diluted basis, please also provide such information.
Summary
Certain Agreements Related to the Transactions
Initial PIPE Purchase Agreements, page 19

3.     Please reconcile your disclosures here and on page 99, with your
disclosures on pages
       88 and 118 relating to the closing status of, the amount of gross
proceeds from, and
       the conversion of the convertible notes relating to, the Initial PIPE
Offering.
Risk Factors
Risks Related to HYPE and Hyperliquid, page 24

4.     Please revise to disclose your policies related to air drops, incidental
rights and hard
       forks, and add risk factors related to such policies as necessary.
5.     Please add additional risk factors that address potential impacts to the
price of HYPE,
       such as competition from other crypto assets and the lack of adoption of
HYPE.
HYPE is a highly volatile asset, page 24

6.     Please revise to include quantitative examples of HYPE   s historic
price volatilities.
HYPE and other digital assets are novel assets, page 25

7.     Please revise to update the status of SEC actions against Uniswap Labs
and OpenSea.
Our HYPE treasury strategy subjects us, page 26

8.     Please revise to describe in greater detail the policies and procedures
you have
       implemented and maintain to promote compliance with applicable
anti-money
       laundering and sanctions laws and regulations.
HYPE is created and transmitted through the operations, page 28

9.     Please revise to discuss recent examples of disruptions to the HYPE
network.
We face risks relating to the custody of our HYPE, page 28

10.    We note your statement on page 201 that "Pubco intends to hold
substantially all of its
       HYPE in custody account at one or more well regarded crypto custodians
(emphasis
       added)." Please revise your disclosure to discuss the risks associated
with completing
       the offering without having a custodial arrangement in place.
11.    Please revise your risk factor discussions to address the possibility
that any insurance
       coverage provided by any custodian may be shared among all of such
custodian   s
       customers.
Due to the unregulated nature and lack of transparency, page 30

12.    Please discuss in more detail the risks of front-running, wash-trading,
and security
       failures or operational problems at HYPE trading venues and the
potential impact on
       your business.
 August 28, 2025
Page 3

Risks Associated with Staking HYPE, page 31

13.    We note your disclosure relating to slashing and penalties. Please
revise to describe in
       greater detail how slashings and penalties are implemented on-chain.
Please also
       disclose the number of times that slashing has been applied on the HYPE
network.
14.    We note your disclosure that staking HYPE involves inherent risks and
that "holders
       who may stake HYPE ('Stakers') should carefully consider these factors
before
       participating." We also note your last sentence on page 31 that "Stakers
bear full
       responsibility for selecting validators and managing their delegations."
Please revise
       your disclosure to clarify whether you are providing investors the
ability to stake.
Risks Related to the Transactions and Pubco Following Consummation
If Pubco or its third-party service providers experience a security breach,
page 37

15.    Please revise to discuss recent examples of security breaches to the
HYPE network.
The Transactions
Background of the Transaction, page 85

16.    We note your disclosure that Chardan approached over 40 potential
counterparties and
       Sonnet separately approached approximately 60 life sciences companies,
but this did
       not result in negotiations of a potential transaction. Please expand
your disclosure to
       clarify whether there were any potential counterparties that expressed
interest in a
       potential transaction and, if so, why you decided not to pursue these
potential
       transactions.
17.    Please revise throughout to provide details of the negotiations of the
material terms of
       the transaction. Your disclosure should indicate the particular views
and positions that
       were discussed at meetings, and how you reached final agreement on such
terms.
       Such terms include, but are not limited to, the purchase price of
shares, the
       percentages held in the combined company by each party, the size of the
PIPE
       investment, the terms of the CVR Agreement, the reimbursement expense,
material
       termination provisions and termination fees.
18.    We note your reference on page 104 to "Sonnet's negotiated equity value
of $4.8
       million." Please describe in this section the negotiations that led to
Sonnet's equity
       valuation.
19.    Please revise your disclosure to clarify whether the representatives of
Chardan
       representing Sonnet and Rorschach included any of the same individuals.
In addition,
       we note your disclosure that on June 11, 2025, representatives from
Chardan,
       representatives from Sonnet, and representatives from Roschach attended
an
       introductory meeting to discuss Rorschach's proposal for a potential
merger between
       Rorschach and Sonnet. Please clarify whether the representatives of
Chardan for both
       Sonnet and Rorschach were present.
20.    Please revise your disclosure to clarify the date that Chardan resigned
as Sonnet's
       financial advisor. Please also disclose how Chardan determined to
represent
       Rorschach over Sonnet in the transaction, any policies or procedures in
place as
       Chardan represented both parties in the negotiation of the term sheet,
and the risks
 August 28, 2025
Page 4

       attendant to the potential conflict of interest of representing both
sides in the
       negotiation of the term sheet.
Analysis of Precedent Reverse Merger Transactions, page 105

21.    Please revise to disclose if the selected precedent reverse merger
transactions include
       all life sciences reverse merger transactions commencing in January 2018
to the extent
       information was publicly available, or if a subset of reverse merger
transactions were
       used, and if so, disclose the parameters for such selection.
Certain Material U.S. Federal Income Tax Consequences of the Business
Combination, page
131

22.    We note your disclosure addresses only "certain" material U.S. federal
income tax
       consequences. Please revise your disclosure throughout the proxy
       statement/prospectus to clarify that you are addressing the material
U.S. federal
       income tax consequences as opposed to "certain" material U.S. federal
income tax
       consequences. For guidance, please refer to Section III.C.1 of Staff
Legal Bulletin 19.
Unaudited Pro Forma Condensed Combined Financial Statements, page 134

23.    We note disclosure throughout the filing "it is expected that Pubco will
hold
       approximately $583.3 million in HYPE...and have cash of at least $304.7
       million." We also note disclosure that "certain investors
shall...contribute at least
       $200.0 million in HYPE Tokens Value, and certain investors may
contribute cash to
       the Company." Please clarify the amount, including whether the investors
have
       already entered into the contribution agreements and the specific
quantities of
       HYPE tokens and/or cash that are contractual or probable under the
agreements.
24.    Please tell us why you are using a stated value of $46.372 per token to
value the
       HYPE in the pro forma balance sheet. As part of your response, please
cite the
       authoritative literature you relied upon to support this per token
amount in your pro
       forma adjustments.
Note 2. Estimated Consideration and Preliminary Purchase Price Allocation, page
139

25.    With reference to the bullet points for Equity consideration and
Estimated direct
       transaction costs, please respond to the following:
           Please reconcile the 12,062,549 shares of Pubco common stock to the
8,776,437
           shares in adjustment (AA) on page 142.
           Please tell us how you determined the equity consideration value of
$119.9
           million and relate your response to the market capitalization of
Sonnet and the
           valuation of the common shares of Pubco in the subscriptions at
$1.25 per
           share. Refer to ASC 805-50-30-2.
           Please tell us how you determined the value of $23.1 million for the
Advisor
           Shares and Advisor Warrants.
26.    It appears from Note 2 that you are accounting for the transaction with
Rorschach as
       an asset acquisition and recording the assets acquired at fair value. We
note from page
       F-51 that on July 2, 2025, Rorschach acquired all of the issued and
outstanding stock
 August 28, 2025
Page 5

       in Hyperliquid Strategies Inc for no consideration. Please tell us how
you considered
       whether the transaction was a reorganization of entities under common
control.
Note 3. Historical Adjusted Financial Information, page 141

27.    With respect to the adjustments to Sonnet's historical financial
statements, please
       respond to the following:
           For adjustments A and C, please tell us where you reflect the
issuance of the
           Series 5 convertible preferred stock.
           Tell us how you considered the outstanding Sonnet warrants that
include
           provisions that could require cash settlement at the option of the
holder upon the
           occurrence of a fundamental transaction in your pro forma
presentation, including
           why you assume no cash settlement.
Note 4. Transaction Accounting Adjustments, page 141

28.    Please respond to the following regarding the transaction accounting
adjustments:
           For adjustment (B), tell us why you eliminate Sonnet's warrant
liabilities.
           For adjustment (AA), tell us how you determined the 8,776,437 shares
expected
           to be issued to the pre-acquisition equity holders of Sonnet. Also,
explain how
           you considered the weighted average shares outstanding historically
for Sonnet
           and why those shares are included in the pro forma combined amounts
shown on
           pages 137 and 138.
Business of Sonnet, page 150

29.    Please revise your disclosure in this section as appropriate to update
the development
       status of your product candidates. For example purposes only, we note
your disclosure
       regarding your expectation to report topline efficacy data from the
Phase 1 SB101
       clinical trial of SON-1010 in the first half of calendar year 2025 and
your "upcoming
       milestone" of an IND submission for SON-1210 in the first quarter of
calendar year
       2025. In addition, please discuss whether Sonnet plans to continue its
research and
       development as disclosed following the Business Combination. In this
regard, we note
       your disclosure that certain development projects have been placed on
hold while
       Sonnet seeks partnering opportunities. Please disclose with specificity
the
       development projects you are continuing and any updated milestones.
Information About Rorschach and Pubco
Overview, page 197

30.    Please revise to discuss the Advisor/Sponsor   s experience with digital
assets. In this
       regard, we note your disclosures throughout that the Advisor/Sponsor
"will provide
       technical advisory services to Pubco related to the digital asset
ecosystem, including
       Hyperliquid and related digital assets, developments in digital asset
industries, the
       selection of third-party vendors with respect to asset management and
related digital
       asset services, and other strategic advice regarding digital assets
treasury operations
       for a term of five years." We also note your disclosure on page 205 that
Rorschach has
       "limited operating history" and "limited historical financial
information" upon which
       to base an evaluation of their performance.
 August 28, 2025
Page 6
HYPE Strategy, page 197

31.   Please revise to discuss in greater detail the material aspects of your
HYPE treasury
      strategy, including without limitation:
          A more detailed description and quantification of your "working
capital
          requirements," including whether this involves continuing the
research and
          development of Sonnet's product candidates.
          Any policies and procedures you have in place or intend to adopt that
govern
          when you exchange cash for HYPE and when you convert your HYPE to
cash.
HYPE Staking Strategy, page 198

32.   Please revise to provide a materially complete description of your
proposed staking
      program, including, but not limited to:
          Whether you will engage third-party staking providers, and your
criteria and
          selection process for such staking providers.
          The percentage of your HYPE holdings that will be staked.
          How staking rewards are calculated.
          Any policies with respect to the use of proceeds from staking
rewards.
          Any risk management practices to manage liquidity risks associated
with staking.
          The custody arrangements for staked HYPE.
Strategic Focus on HYPE-Treasury Companies, page 198

33.   You state here that you intend to accumulate HYPE and that you may
selectively
      deploy a portion of your HYPE holdings or future proceeds into
income-generating
      activities or opportunistic M&A transactions involving HYPE-aligned
      businesses. Please revise to clarify whether the primary focus of the
business will be
      to accumulate HYPE and benefit from its appreciation, or whether the HYPE
reserve
      will be used to support or finance other operating activities. Please
also revise to
      describe in greater detail what you mean by "HYPE-aligned businesses."
Overview of the HYPE Token and the Hyperliquid Ecosystem, page 198

34.   Please revise to further:
          Describe the lifecycle of a HYPE transaction.
          Provide example use cases for HYPE.
          Discuss the current and circulating supply of HYPE, the vesting
schedule of
          HYPE, how new HYPE is created, any burn mechanism, the amount of HYPE
          locked up and the related unlocking schedule, and any inflationary or
deflationary
          mechanism. In this regard we note your disclosure that the maximum
supply is
          capped at 1 billion tokens, and the approximate yearly reward rate on
          staked/delegated HYPE is 2.37%.
          Describe the role of the Hyper Foundation in the governance of HYPE,
and your
          relationship with the Hyper Foundation, if any.
 August 28, 2025
Page 7
Implementation Timeline, page 201

35.    Please revise to disclose a more detailed timeline of the building of
your HYPE
       treasury for the next twelve months, the implementation of your plans to
generate
       HYPE yield, and any planned investments in "HYPE-aligned businesses."
Include an
       estimate of the cost of each step, the sources of capital of each step
and the challenges
       you may face.
Custody of Pubco's HYPE, page 201

36.    Please revise to disclose whether Pubco will consider the availability
and amount of
       insurance coverage as factors in its evaluation and selection of
custodians.
37.    We note your statement that "Pubco   s custodial services agreements
will generally
       specify that the private keys that control the HYPE will be held in
offline or    cold
       storage (emphasis added)." Please revise to describe the circumstances
under which
       the private keys may be held outside of cold storage.
38.    Please revise to disclose your evaluation and selection criteria and
process for
       counterparties related to purchases and sales of HYPE, and the material
proposed
       terms of your agreements with your counterparties.
Certain Relationships and Related Party Transactions, page 216

39.    We note your disclosure on page 201 that Pubco intends to utilize
affiliates of its
       HYPE custodians to execute HYPE acquisition and disposition transactions
on its
       behalf. Please revise to discuss potential conflicts of interests
associated with this
       arrangement.

       Please contact Kate Tillan at 202-551-3604 or Jason Niethamer at
202-551-3855 if
you have questions regarding comments on the financial statements and related
matters. Please contact Lulu Cheng at 202-551-3811 or Irene Paik at
202-551-6553 with any
other questions.

                                                              Sincerely,

                                                              Division of
Corporation Finance
                                                              Office of Crypto
Assets
cc:   Jason Simon

```

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