Hyperion DeFi, Inc.

Greetings, and welcome to Hyperion D5's Q3 25 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Jason Asad. Thank you, Jason. You may begin.

Good afternoon, and welcome to Hyperion DeFi's 2025 Third Quarter Earnings Call. Joining me today are Interim CEO Hun-Soo Jung and CFO David Knox. Before we get started, please note that our remarks today may include forward-looking statements. These statements are subject to risk and uncertainties, and actual results may differ materially. During this call, we may use words like anticipate, could, enable, estimate, intend, The expect, believe, potential, will, should, project, and similar expressions, which indicate forward-looking statements. For a more comprehensive discussion of these and other risks, please refer to our filings with the SEC, available on sec.gov and in the investor relations section of our website at hyperiondeFi.com. We'll also reference certain non-GAAP financial measures today. Please refer to our earnings release and earnings supplement on our website for a full reconciliation of these non-GAAP measures today. to the most comparable gap measures. We will start this morning's call with prepared remarks from Hunsu and David, followed by Q&A. Questions may be submitted via email to IR at HyperionDeFi.com. I'll now turn the call over to our interim CEO, Hunsu Jung.

Thank you, operator, and good afternoon, everyone. Welcome to Hyperion DeFi's third quarter 2025 earnings call. our first full quarterly earnings call from completing our strategic transformation from a biotech company to the first U.S. publicly listed digital asset treasury company focused on the hyperliquid ecosystem. And before I dive into our Q3 achievements, I want to acknowledge that this has been an extraordinary year for Hyperion DeFi. We successfully executed what I believe is one of the most significant corporate transformations in recent public market history. pivoting from Inovia's ophthalmic technology focus to establishing ourselves as a premier institutional gateway to DeFi innovation. Today, Hyperion DeFi stands as the first U.S. public company building a strategic hype token treasury. We're not simply holding digital assets. We're actively participating in the sustainable growth and governance of what we believe will become the backbone of next generation financial services, the hyperliquid blockchain. Our thesis is straightforward. Traditional finance is undergoing its most significant transformation since the advent of electronic trading. Hyperliquid represents the convergence of institutional-grade performance with decentralized innovation, offering up to 100,000 transactions per second with sub-second finality, all fully on-chain. As institutions increasingly recognize the utility of blockchain adoption, we believe Hyperliquid's infrastructure advantages position it to capture significant market share in not only the extensive derivatives market, but also as part of its larger role as a sustainable layer one blockchain ecosystem. Let me briefly outline why our conviction on Hyperliquid is so strong and why we decided to establish a digital asset treasury focused on hype, its native token. All information is as of October 31st, 2025 and based on external resources. Hyperliquid is the number one revenue-generating blockchain and number 11 cryptocurrency by market cap, both figures excluding stablecoins. Hyperliquid generates annualized revenue of approximately $1.3 billion based on an October 2025 observed run rate of $3.5 million per day. Additionally, platforms built on Hyperliquid earn approximately $2 million in fees per day, bringing the total fees to approximately $5 million per day across the blockchain and platforms. Approximately 99% of Hyperliquid revenues are used by the Hyperliquid Assistance Fund, which has cumulatively purchased and owns 34.25 million hype tokens with a market value of approximately 1.45 billion. There have been over 800,000 cumulative Hyperliquid marketplace users since inception. Hyperliquid's token maximum supply is 1 billion, of which the circulating supply is approximately 337 million and corresponds to a market capitalization of approximately 14.3 billion. Daily trading volume on Hyperliquid exceeds $12 billion. Cumulative Hyperliquid fees have exceeded $700 million since inception. And cumulative cryptocurrency perpetual trading volume on Hyperliquid has exceeded $3 trillion since inception. With that in mind, what sets Hyperion DeFi apart from other digital asset treasury companies is our comprehensive ecosystem engagement strategy. While companies like MicroStrategy pioneered the corporate Bitcoin treasury model and others have followed with various token strategies, our approach with Hyperliquid goes far beyond simple accumulation. the market opportunity we're addressing continues to expand rapidly. Upcoming network upgrades, such as the recently announced HIK3, are expected to create new opportunities for users, ranging from retail to institutions, to participate in the ecosystem. For example, the requirement for 500,000 hype stake to launch new perpetual futures market has generated and is expected to continue to generate natural demand for large long-term token positions, which is exactly what we've worked to build through our strategic accumulation. Our competitive positioning is unique. As the first and largest public company focused on hype, we believe we have advantages in capital access, regulatory compliance, and institutional credibility that will be difficult for competitors to replicate. We also continue to develop what we expect to be long-term relationships with various participants in this space, ranging from protocols to major market makers and execution counterparties. One of our most significant Q3 achievements was launching our first hype asset use service agreement with proprietary trading firm Credo Cayman. This innovative structure allows institutional clients to utilize our state-type position to reduce their transaction costs on hyperliquid while both parties share the resulting fee savings. This model demonstrates how our treasury position can create unique revenue opportunities that extend far beyond simple token appreciation. We're essentially monetizing our stake in the network infrastructure while maintaining full ownership of our underlying assets, a business model that we believe has no equivalent in traditional finance. Our vision extends beyond generating robust revenues on our treasury assets. We're actively supporting the build out of institutional infrastructure to bridge traditional finance and decentralized finance. The appointment of David Knox as our chief financial officer exemplifies the strategy. David previously served as both head of capital markets and head of finance for global credit and financial services at PayPal. He brings deep experience in scaling institutional financial product, and we believe his expertise in structured products and capital markets positions us to develop sophisticated financial services built on hyperliquids infrastructure. It may be difficult to recognize now, but Hyperion DeFi is in the early phases of building out a unique strategy that we anticipate will benefit from a flywheel effect that circulates both on and off chain. We're not waiting for others to start this flywheel. We're accelerating it day by day alongside other ecosystem builders developing institutional-grade products and services that leverage Hyperliquid's unique blockchain technology while meeting the regulatory and operational standards that traditional institutions require. Our financial strategy is designed to create long-term shareholder value through multiple pathways. First, direct exposure to hype token appreciation as we expect the Hyperliquid ecosystem to continue to grow and capture market share and decentralized derivatives. Second, we anticipate recurring revenue from our growing portfolio of DeFi services, including validation, asset use services, and future product offerings. Third, the potential for strategic partnerships or acquisition opportunities as we expect traditional financial institutions to seek exposure to DeFi infrastructure. And fourth, optionality around our legacy assets, including the potential for UFD monetization through strategic partnerships. I want to provide a quick rundown of our six business activities in Q3. Number one, staking rewards. This starts with our Kinetic X Hyperion validator. The company stakes its hype to its validator and earns hype rewards. Number two, validator commissions. The company operates its validator under a joint validator-operators agreement together with Kinetic and Peer2. It earns commissions on rewards delivered to third-party tokens delegated to the validator. Number three, yield enhancement. The company pursues accretive strategies to enhance yield earned on its tokens. In Q325, this included the launch of the company's HYPE hype or Hyperion Institutional Hype liquid staking token. Gains on covered call option strategies included in the realized and unrealized gains on digital assets income statement line items and certain liquid staking activities. Number four, DeFi monetization. The company supports and monetizes DeFi activity on the hyperliquid blockchain with practices we believe to be sustainable and scalable. In Q3 25, this included the launch of the company's proprietary hype asset use or house platform, which allows its clients to unlock unique utility on hyperliquid while generating fee income for Hyperion DeFi. We expect to be able to generate new revenue streams on top of staking, something that simply isn't possible with traditional treasury assets. The company announced its first house transaction with Credo in September 2025. which enables Credo to receive the benefit of lower trading fees on the hyperliquid decentralized exchange, with Hyperion D5 receiving a portion of those savings as income, while continuing to earn staking rewards. The company's second house transaction was announced in Felix in October 2025, enabling Felix's launch of new financial markets on the hyperliquid blockchain, with Hyperion D5 receiving a portion of fees generated from their markets, again, while continuing to earn staking rewards. We have initiated a partnership with Native Markets to support their qualification of USDH, the hyperliquid native stablecoin, under the network's aligned quote asset framework. We expect their partnership to go live in the fourth quarter and to hold some USDH on our balance sheet. Number five, ecosystem rewards. Through our active participation in the hyperliquid DeFi ecosystem, we believe the company positions itself for the receipt of future potential token airdrops, protocol incentives, and other rewards that may become available periodically. In Q325, the company's validator received over 3 million tokens delegated from the Hyperliquid Foundation. We also anticipate an ecosystem rewards opportunity near term with Kinetic. Kinetic is the largest institutional liquid staking protocol on Hyperliquid, with over 1 billion in total value locked. As a reminder, through our co-branded validator partnership with Kinetic, Hyperion DeFi directly contributes to network security while generating staking yields on both our hype as well as hype delegated from other network participants toward our validator. With them, we have created our own liquid staking token used to participate in off-chain strategies and in Hyper-EVM DeFi. We have kinetic points and we anticipate being eligible for their token generation event. We expect additional clarity on this topic in Q4. And number six, life sciences. Hyperion DeFi continues to develop its proprietary OptiJet user-filled device. As we enter the fourth quarter, we're focused on several key strategic initiatives, expanding our hype asset use service offerings, deploying assets into additional DeFi products on Hyper-EVM, and continuing to strengthen our position in supporting HIP3-enabled market launches, which we expect will require significant long-term hype stakes. We believe the fundamentals supporting our strategy continue to strengthen. Hyperliquid holds a position as the leading decentralized perpetuals exchange with over 60% market share as of October 31st. Daily average revenues continue to exceed $3 million, supporting the buyback mechanism that has sequestered over 30 million HYPE tokens. Our treasury position has grown to over 1.7 million HYPE tokens as of the end of Q3, positioning us to participate in the network's anticipated continued expansion. We believe this is just the beginning of our transformation, in the same way that this is still the beginning for Hyperliquid. We're building what we believe is a new category of financial services company, one that combines public market accessibility with cutting-edge DeFi innovation. We hope that you all are as excited as I am for what's to come. With that, I'll turn the call over to David to walk through our third quarter financial results in detail.