It appears that the rally of August has given digital asset treasuries (DATs) a new boost.
As previously reported by AMBCrypto, DeFi Development Corporation (NASDAQ: DFDV) used CHAD stock to raise funds, which allowed it to have more dry powder to buy Solana.
Hyperliquid Strategies, in its turn, seems to be doing the same. The company has increased its equity facility with Chardan Capital Markets from $1 billion to $2.5 billion, allowing it significantly more room to raise funds by selling shares and accumulating HYPE.
Of course, whether the DAT will actually use the fresh capital to buy more HYPE is to be seen.
Still, the technical setup makes it difficult to ignore the possibility. Hyperliquid Strategies (NASDAQ: PURR) has already climbed more than 44% in Q3, adding to its gains from Q1 and Q2, in which the stock jumped 42% and 52%, respectively.
At this rate, PURR could be set to post its best quarter ever. The stock has already surged past $15 and set a new all-time high this quarter.
According to AMBCrypto, this breakout is significant because if PURR can hold above 15 and continue the bullish impulse, it could give the company more room to get more funds into Hyperliquid [HYPE].
This makes its recent increase of its equity facility to $2.5 billion even more intriguing, as PURR’s strong price action could provide Hyperliquid Strategies with greater flexibility in raising and deploying capital.
Notably, it makes the timing of HYPE’s Q2 report anything but coincidental.
HYPE’s breakout strengthens the Q4 accumulation case
A recent Q2 report demonstrates the rapid growth of the Hyperliquid ecosystem.
Trade[XYZ], the trading platform built on Hyperliquid, recorded a 79.2% increase in quarterly trading volume to $202.36 billion, while its share of HIP-3 volume climbed from 84.5% to 95.1%.
The bigger story, however, is the growth in equity trading. Volume in the segment surged 377% to $58.9 billion, with markets for private companies such as SpaceX, Cerebras, and Quantinuum.
Why does this matter? According to AMBCrypto, the significance of this development is that it suggests that Hyperliquid is gradually moving beyond crypto-native assets, with increased activity around equity and other traditional-market products.
In this context, the latest capital raise by Hyperliquid Strategies better positions the firm to benefit from its expanded market presence.
In short, the technical setup as well as the on-chain activity suggests that the chances for Hyperliquid Strategies to increase its HYPE exposure are growing.
Notably, the technical setup of HYPE itself added weight to this view. HYPE closed up over 60% in August to reach a new all-time high of $86 and its highest monthly gain since May.
For reference, that was 2x Ethereum’s 32% rally over the same period, underscoring the strength of the capital rotation into HYPE.
From this perspective too, the prospect of Hyperliquid Strategies raising further capital to onboard hype cannot be overlooked, with the token potentially seeing a further accumulation heading into Q4 if the bullish trend persists.
Final Summary
- PURR’s strong rally and the $2.5 billion equity facility could give Hyperliquid Strategies more room to buy HYPE.
- With Hyperliquid growing and HYPE gaining over 60% in August, more HYPE accumulation could be on the cards in Q4.
