Hyperliquid Strategies Inc. (NASDAQ:PURR) stock fell more than 5% Friday as investors took profits after Thursday’s sharp rally.
The broader market also weakened. The S&P 500 fell 0.49%, while the Nasdaq slipped about 0.05%.
Expanded Financing Facility
Hyperliquid Strategies recently expanded its financing capacity. According to an 8-K filing, the company amended its committed equity facility with Chardan Capital Markets. The amendment increased the facility from $1 billion to $2.5 billion.
Hyperliquid Strategies can issue shares to Chardan under the agreement. The company plans to use proceeds to accumulate HYPE tokens for its corporate treasury.
As of June 30, the company had sold about $647 million of stock under the original facility.
Nasdaq rules could limit additional issuances after sales reach $1 billion. Without shareholder approval, the company can sell up to about 42.6 million additional shares below $12.02 per share. That represents roughly 19.99% of shares outstanding.
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Technical Picture Remains Strong
Despite Friday’s decline, PURR remains well above its major moving averages. The stock trades about 23% above its 20-day simple moving average of $9.81. It is also nearly 47% above its 50-day average of $8.23.
However, the stock remains below its 52-week high of $14.14. The $14 level could serve as near-term resistance.
PURR also remains exposed to sharp swings because its business centers on accumulating HYPE, the native token of the Hyperliquid blockchain.
Analyst Outlook
PURR carries a Buy consensus rating and an average price forecast of $15.13.
Chardan Capital raised its price forecast to $17 on Aug. 28 and maintained a Buy rating. Cantor Fitzgerald raised its price forecast to $18.40 on July 1 and maintained an Overweight rating.
Price Action
PURR Price Action: Hyperliquid Strategies shares fell 5.36% to $12.09 at the time of publication Friday, according to Benzinga Pro data.
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