Shares of Sonnet BioTherapeutics (NASDAQ: SONN) soared in pre-market trading on Monday after the company announced a $888 million business combination to pivot into the cryptocurrency sector . Sonnet’s stock, which closed at $5.17 on Friday, traded as high as $18.68 in pre-market hours, marking a 265% jump. Year-to-date, SONN shares have already gained more than 220%. By press time, the stock was down slightly, trading about 2% lower on the day. SONN one-day stock price chart. Source: Google Finance The momentum follows the biopharmaceutical firm’s agreement with Rorschach I LLC, an entity backed by Atlas Merchant Capital and Paradigm Operations, to form a new company named Hyperliquid Strategies Inc. (HSI). The deal will effectively transform Sonnet into a publicly traded cryptocurrency treasury company, focusing on holding and growing reserves of HYPE tokens. Details of the transaction Under the terms of the agreement, HSI will hold approximately 12.6 million HYPE tokens, valued at around $583 million, as well as at least $305 million in cash at closing. The total transaction is valued at $888 million. The transaction attracted participation from some of the most prominent names in crypto investing , including Paradigm, Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital. Upon closing, the new company will continue to trade on the Nasdaq under a yet-to-be-announced ticker symbol. Leadership at HSI will include Bob Diamond, Co-founder and CEO of Atlas Merchant Capital, as Chairman of the Board, and David Schamis, CIO and Co-founder of Atlas, as CEO. The board will also add new members, notably Eric Rosengren, former President of the Boston Federal Reserve, alongside two of Sonnet’s current independent directors. In addition to the initial HYPE reserves and cash, HSI aims to use its capital to acquire more HYPE tokens, positioning itself as one of the largest strategic holders of the asset. The companies anticipate that the transaction will close in the coming months, subject to approval by regulatory authorities and shareholders. Featured image via Shutterstock. The post This stock rockets 260% after $900 million mega crypto deal appeared first on Finbold .