Deal Delay: How Hyperliquid’s $888 Million DAT Merger Hit a Snag

 In a notable setback in the crypto‑finance world, the digital asset transaction (“DAT”) merger involving the derivatives trading platform Hyperliquid has been postponed — delaying a deal valued at approximately US $888 million. 

What’s Happening

Hyperliquid Strategies, a unit tied to Hyperliquid, announced the delay of a shareholder vote by at least two weeks. According to David Schamis, the company still needs to secure favorable votes from over 50 % of outstanding shares, despite having received 95 % approval of votes cast so far. 

This merger was first unveiled in July, when Sonnet BioTherapeutics, Inc. disclosed its intention to merge with “Rorschach I LLC” (owned via an affiliate of Atlas Merchant Capital LLC) to form the new digital‑asset fund. At the same time, the deal was framed around enabling Hyperliquid to accumulate and hold its native token, HYPE. 

On paper, combining existing HYPE tokens and approximately US $305 million cash, the deal value was initially estimated at US $888 million. The target raise was up to US $1 billion via new share issuance. 

Why the Delay Matters

1. Regulatory and shareholder hurdles – The delay highlights how even well‑backed crypto deals must satisfy traditional corporate governance thresholds (e.g., votes of > 50 % of outstanding shares).

2. Market timing risk – The DAT fund space had been hot, but investor appetite appears cooling. The piece notes that “the DAT frenzy cooled a few weeks ago” and many treasury‑funds are buying back shares instead of launching new vehicles. 

3. Valuation and confidence signals – With nearly US $888 million at stake, any delay or failure may affect investor sentiment, especially in the broader crypto fund‑raising environment which is already under pressure.

4. Impact on the token ecosystem – Because HYPE token holders are involved via the new fund model, delays may affect token distribution, liquidity, or the timeline for operations tied to the token roadmap.

What to Watch

• Shareholder vote outcome: Will Sonnet’s outstanding shares cross the >50 % threshold to approve the deal?

• Fundraising success: The goal of up to US $1 billion will be under scrutiny in a market that’s showing signs of fatigue.

• Launch timeline: With the vote postponed at least two weeks, the operational timeline of the DAT fund may slip further.

• Broader DAT space: Whether this signals a turning point for digital asset funds (DATs) in terms of deal momentum and investor interest.

• HYPE token developments: Any delay may ripple into token utilities, lock‑ups, or expected strategic moves by Hyperliquid.

The Bigger Picture

This situation exemplifies the intersection of traditional capital‑markets mechanisms (like shareholder voting, regulatory filings) with crypto‑native financial constructions (digital asset funds, token holdings). While crypto venture capital still seeks to innovate, the realities of governance, investor confidence, and market timing remain pivotal.

For Hyperliquid, a successful closure would have signified a strong step into institutional‑style digital asset fund vehicles; the delay doesn’t necessarily derail that ambition, but it introduces risk and underscores that execution can be just as important as concept.

Conclusion

In short, the deal involving Hyperliquid’s DAT creation and the US $888 million valuation is on hold for now. The delay — driven by the need for more shareholder votes — serves as a reminder that even in the fast‑moving world of crypto finance, the fundamentals of capital markets still apply. Whether the fund launches as planned, raises the full amount, and delivers value depends now on governance, investor commitment and market conditions.

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