Hyperliquid just approved a $30 million share buyback program, which is pretty wild considering the company only went public like a week ago. Most companies wait years before launching buybacks, but Hyperliquid’s moving fast.
CEO David Schamis says the board wants to boost investor exposure to HYPE tokens on a per-share basis through smart treasury management. Basically, they’re buying back shares to increase the value for remaining shareholders.
The company came from merging Sonnet BioTherapeutics, a healthcare tech firm, with Rorschach, a SPAC backed by crypto investor Paradigm. The deal was supposed to close in November but got delayed when shareholders initially didn’t approve it enough. Trading finally started December 3rd under the ticker PURR on Nasdaq at $3.64 per share.
Hyperliquid Strategies plans to stake most of their HYPE holdings or use the capital for DeFi activities that generate yields. They’ve got some serious backing too: D1 Capital, Galaxy Digital, Pantera Capital, and former Barclays CEO Bob Diamond as chairman.
The underlying Hyperliquid protocol did something unusual by not raising venture capital. Instead, they airdropped about a third of the total supply, worth $1.2 billion, directly to early users when launching in late 2023. The native HYPE token is trading around $29 now, down from its September peak of $59.30.
Conclusion
Hyperliquid’s rapid $30M buyback aims to boost HYPE token value, backed by major investors, after its unusual VC-free launch and merger-driven public debut.
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