- Nasdaq-listed Lion Group spends $2M on HYPE tokens at ~$37.30 each
- First tranche under a $600M convertible facility, aiming for 75% token allocation
- Digital asset strategy includes HYPE, SOL, and SUI for its treasury
Lion Group Holding, a Nasdaq-listed firm, has taken a bold step in the world of decentralized finance (DeFi) by purchasing $2 million worth of Hyperliquid (HYPE) tokens. This investment follows the initial closing of a $600 million convertible debenture facility designed to strengthen its digital asset treasury.
The tokens were bought at an average price of approximately $37.30 each. This purchase is part of Lion Group’s long-term vision to build a “Layer-1 treasury,” with HYPE becoming the centerpiece of its reserve assets. Alongside HYPE, the firm is also allocating funds to Solana (SOL) and Sui (SUI) to diversify its crypto holdings.
Treasury Structure & Future Allocation
The first tranche of this facility has already delivered around $11 million in funding, allowing the company to initiate its HYPE acquisition. Lion Group plans to allocate a minimum of 75% of the net proceeds from future closings directly into purchasing tokens such as HYPE, SOL, and SUI.
The remaining funds will be used for general crypto-related operations and working capital. To secure and stake its digital assets, Lion Group has partnered with BitGo, a well-known name in crypto custody services.
In addition to expanding its treasury, Lion Group is looking to attract more investors through secondary stock listings in Tokyo and Singapore. This move aims to broaden the firm’s shareholder base and provide greater exposure to its evolving crypto strategy.
Market Impact & Strategic Risks
Interestingly, while the company’s stock surged nearly 20% following the treasury announcement, HYPE’s price dropped by about 7%. This reflects typical crypto volatility and the market’s mixed sentiment toward corporate token holdings.
With such a large financial commitment tied to token performance, Lion Group’s strategy carries risks. Declining values of HYPE, SOL, or SUI could impact the overall strength of its treasury and potentially affect its long-term plans.
Despite this, the company is doubling down on its belief in the DeFi ecosystem. Updates on further token purchases, staking results, and global listings are expected as Lion Group continues its push into the crypto space.
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