The company plans to expand cryptocurrency exposure in its investment portfolio.
Lion Group, a Hong Kong-based brokerage and trading firm listed on Nasdaq, has successfully secured $600 million in financing from ATW Partners to implement the Hyperliquid treasury. This significant announcement led to a remarkable 19.78% increase in the company’s shares on Wednesday. The first installment of $10.6 million will be finalized within 48 hours following the announcement. Concurrently, Lion Group announced the relaunch of its cryptocurrency operations, considering the inclusion of cryptocurrency exposure within its existing portfolio of ETFs, over-the-counter options, and total return swap products.
ContentsHyperliquid Treasury StrategyShare Surge Following Financing Announcement Hyperliquid Treasury Strategy
Wilson Wang, CEO of Lion Group, emphasized that Hyperliquid is a natural extension of their existing derivatives business into decentralized markets. According to Wang, Hyperliquid reflects their belief that decentralized blockchain applications represent the future of trading. This initiative aligns with a trend, pioneered in the traditional financial sector by Michael Saylor’s Strategy, where companies raise funds or take out loans to establish crypto-based treasuries.
The initial seed of $10.6 million from the $600 million financing provided by ATW Partners will be officially completed within 48 hours of the agreement’s announcement day. The funds are expected to be allocated to Solana $145 (SOL) and Sui (SUI) altcoins, which are anticipated to be the cornerstone of the company’s treasury plan focusing on ‘protocols with application priority.’ Lion Group’s SOL and SUI assets will be securely held by BitGo.
Share Surge Following Financing Announcement
The announcement of the financing and Hyperliquid treasury project promptly reverberated through the market. Lion Group’s shares, listed on Nasdaq under the ticker LGHL, closed Wednesday’s regular trading session with an impressive 19.78% increase, reaching $3.33. Following this strong uptick, Yahoo Finance data indicated a 3.9% pullback in after-hours trading, suggesting that while investors responded positively to the news, profit-taking followed the initial enthusiasm.
On the same day, the company also announced the relaunch of its cryptocurrency operations. Under this plan, Lion Group aims to expand its current investment product lineup. The company will evaluate the possibility of including cryptocurrency exposure in its existing portfolio, which includes exchange-traded funds (ETFs), over-the-counter options, and total return swap (TRS) products. Founded in 2015 and publicly listed on Nasdaq in 2020, Lion Group integrates traditional financial products with efforts in the decentralized finance (DeFi) space.
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