Hyperliquid Strategies approves a $30 million stock buyback program

Hyperliquid Strategies — the entity that filed a $1 billion registration in October to build the HYPE treasury — has just approved a multi-million dollar share buyback program.

According to Monday’s announcement, the board of directors has authorized the company to repurchase up to $30 million worth of shares over the next 12 months. This move follows the trend of major DATs supporting share prices, from BitMine to Michael Saylor’s Strategy.

CEO David Schamis stated that the company is committed to maximizing shareholder value and using cash reserves to efficiently increase investor exposure to HYPE.

Notably, the buyback plan was announced just days after this digital asset treasury officially launched.

Hyperliquid Strategies was formed through the merger of Sonnet BioTherapeutics and Rorschach — a SPAC related to Paradigm. The deal was completed on December 2 after a two-week delay.

PURR shares have been listed on Nasdaq since December 3 and are currently down about 1.1% to $3.64.

In October, the company filed an S-1 to raise up to $1 billion for treasury operations, with plans to stake most of its HYPE holdings or deploy them into non-staking DeFi protocols.

Hyperliquid did not raise traditional VC funding. Instead, about one-third of the HYPE token supply worth $1.2 billion was airdropped to early users at the end of 2023. The protocol is now the largest decentralized perps DEX by total trading volume.

Hyperliquid Strategies has strategic backing from D1 Capital, Galaxy Digital, Pantera Capital, Republic Digital, and 683 Capital. Former Barclays CEO Bob Diamond is the company’s chairman. Lion Group Holding previously raised $600 million for a separate HYPE treasury.

HYPE is currently trading sideways around $29, well below the peak of $59.30 recorded in September.