Nasdaq-listed Lion Group Holding (LGHL) is establishing a $600 million cryptocurrency treasury reserve, with the Hyperliquid (HYPE) token as its main asset, signaling a growing institutional interest in altcoins beyond Bitcoin.
The Singapore-based trading platform said it secured a $600 million facility from ATW Partners to fund the launch of its Hyperliquid (HYPE) token treasury and other blockchain initiatives. According to the company, $10.6 million of the capital will be deployed by Friday.
The Hyperliquid token will serve as the “primary reserve asset” of the firm’s layer-1 (L1) treasury reserve asset, which will also feature Solana (SOL) and Sui (SUI) tokens.
“Hyperliquid represents a natural extension of LGHL’s existing derivatives business into decentralized markets, and reflects our conviction that decentralized onchain execution is the future of trading,” said Wilson Wang, CEO of LGHL in a Thursday announcement.
“We view protocols like HYPE, with decentralized sequencing, as foundational to building scalable DeFi systems,” he added.
The firm cited Solana’s dominance in consumer-facing crypto apps and Sui’s recent backing from World Liberty Financial as key factors in its altcoin selection.
Sui partnered with the Trump family-backed World Liberty Financial (WLFI) on March 6, which saw the token included in WLFI’s “Macro Strategy” token reserve, three months after a December interview revealed that Eric Trump held SUI tokens.
Shareholders received the crypto reserve news with optimism, with Lion Group’s stock price soaring nearly 20% on the daily chart after the announcement to trade at $3.33 at the time of writing, according to Google Finance data.
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Corporate altcoin treasuries are gaining traction
The treasury launch comes the same day another Nasdaq-listed firm, Eyenovia, announced its own Hyperliquid reserve. Max Giege, principal at Merenti Capital, called HYPE “the best-positioned digital asset for the future,” and praised the protocol’s fully onchain, friction-free trading model.
“It is rare that a native token’s incentives truly track the network’s success.
“HYPE is the best-positioned digital asset for the future, and Eyenovia will effectively capture that value for shareholders,” he added.
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Increasingly more companies are announcing corporate treasury plans, including firms from traditional industries.
On June 11, Interactive Strength, a Nasdaq-listed fitness equipment manufacturer, announced a $500 million raise to acquire Fetch.ai (FET) tokens and establish the world’s largest corporate AI token treasury, according to the firm.
ATW Partners was also among the initial investors for Interactive Strength’s $500 million treasury. ATW Partners and DWF Labs made a collective $55 million investment in the fitness manufacturer, which was already used to acquire FET tokens.
Elsewhere, Nasdaq-listed Genius Group increased its Bitcoin (BTC) treasury by 52%, surpassing 100 BTC purchased for a total of over $10 million, Cointelegraph reported on Tuesday.
Magazine: US risks being ‘front run’ on Bitcoin reserve by other nations: Samson Mow
