Hyperliquid Strategies Inc

Hello, I'm Rob Diamond, the Director of Corporate Affairs for Hyperliquid Strategies, Inc. Welcome to the third quarter 2026 earnings call. You'll hear shortly from our CEO, David Shamus, and then from our CFO, Brett Beldener. After the presentation, there will be an opportunity for questions and answers from the audience. Before we begin, please note that the comments during today's call and the accompanying presentation contain forward-looking information. All statements, other than statements of historical facts, are considered forward-looking statements. All forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from the results discussed in the forward-looking statements. Some of these risks and uncertainties are identified and discussed in the company's filings with the SEC. In addition, information in this call and the presentation regarding Hyperliquid and its operations is based on information that has been publicly disseminated by Hyperliquid and has not been independently verified by the company. We ask you to take a moment to read the disclaimers at the beginning of the slides that accompany this presentation, as they contain important information.

Thank you, Rob. This is David Shamus, CEO of Hyperliquid Strategies. Happy to be here again to announce another quarter's worth of earnings. As a quick reminder, we are by far the largest digital asset treasury company for the hype token. Today, we own over 20 million hype tokens and have over 100 million in cash on our balance sheet. We have been working hard to find ways to enhance our earnings while constructively contributing to the hyperliquid ecosystem. Today's example of that is that we are launching a validator, which we'll be talking about more shortly. Regarding hyperliquid, we continue to see more and more real world assets moving on chain via the hyperliquid blockchain, which we find very interesting and exciting. And we're going to talk, obviously, about that more as we go forward. And finally, we continue to see the hype token perform very well, especially compared to other major crypto tokens. If you turn on CNBC or any other business news channel on any given day, you will hear any number of the titans of finance that we all know and love talking about how global finance is going to be going on chain in the years to come. I think that we all agree with this. And what I continue to really believe is that a lot of those titans, while they're correct in their statements, don't really know or understand or think hard about how exactly that's going to happen. What is the precise legal mechanics and form of how that's going to get done? We think the answer to that is fairly obvious. And a big part of that is hyperliquid. We've talked about this in the past and we'll talk about it more today. But hyperliquid has been and we think will continue to be the simplest, cleanest and easiest path for real world assets coming on chain. The most exciting thing I would say from since the last quarter's earnings announcement is the amount of attention and focus that this fact has garnered over the last three months. We've been in the middle of it. Lots of people have seen it. And we're going to talk more about it today. Unlike many relatively young platforms, both in crypto and outside of crypto, HyperLit generates a significant amount of cash flow. As we'll see in a few pages from now, nothing else in crypto really compares. And as many have commented on recently, it's amazing to look at what a team of 12 people who never took one penny of outside capital has been able to achieve. These numbers are actual fees that the protocol has generated over time. The numbers on the right showing various rankings and positions that are on the hyperliquid blockchain today are actual numbers. And these aren't things we hope to achieve. These are things that have actually happened. And it is just worth noting on every time we get on the phone that this was done by 12 people without one penny of outside capital. I referred to this a second ago, but this will keep coming up in our discussion. But HIP3, which is the term used for bringing real world assets on chain in PERP form on hyperliquid. I've been talking about this for a year now. Last summer, when we announced our deal, this was something that looked like a really exciting thing that might happen sometime in the future. We were excited about it. Other people in the ecosystem were excited about it, but no one was seeing tangible evidence yet because it didn't happen yet. HIP3 only launched in November. And if you look today of the largest trading pairs on Hyperliquid, five of the top 10 are real world assets. The S&P 500, the equivalent of the NASDAQ 100, two oils and gold. It is really impressive to see the size of these markets and the short period of time that they've become as important as they have. The 24-hour volume, this was on April 29th, for one of the oil contracts you see here was $710 million. That is real money in a short period of time. It's only been a few months since oil was even listed on hyperliquid to begin with. In the early part of 2026, we got to see two live examples of the impact that hyperliquid could have on real world assets well beyond a crypto exchange. On the left here, we see silver. In January, when metal trading was seeing a spike in volume globally, hyperliquid quickly became a relevant venue for that trading. There was one day, you see here the line here, where hyperliquid silver volume spiked. It's obviously a volatile thing because it's the trading levels in silver are volatile, but it's continued to reach those high levels in the future. And it's been just incredibly impressive to see what has happened in silver and other metals on hyperliquid also in a short period of time. Frankly, more interesting, if you look at the chart on the right, is when oil came onto hyperliquid. This happened only a few weeks before the Iran war started. You'll notice here the line for when the Iran conflict started. Interestingly, that started late on a Friday, New York time, when the other conflict, traditional venues where oil trades was closed. And you can see what happened on hyperliquid as far as oil trading volume from that Friday going forward. You see that first slope in that first few days, but it obviously continued meaningfully after that. We're at a point now when you look at these volume numbers, and you look at what's going on in the world, it's impossible to say that hyperliquid has not very quickly become an important part of the oil trading world. And I think that lots of the traditional venues have noticed this. The amount of interest we've gotten from what I call TradFi market participants, people we talk to all over the place because of this and the press it's garnered, has been very, very impressive. While we are still very excited about HIP3, the team in Singapore is bringing us HIP4. HIP4 is outcome markets, also known as prediction markets. Building this capability onto Hyperliquid is very exciting and very brand new. They've launched a few markets so far, really it's just a proof of concept. But behind all the headlines that prediction markets get, there are some really important things to stress here. First of all, this isn't just about competing with calcium polymarket, even though people love talking about calcium polymarket. It's about options. It's about insurance. There's a massive market that hyperliquid can attack with bringing outcome markets on chain on hyperliquid. Secondly, like HIP3, HIP4 ultimately will be set up where deployers can permissionlessly build on hyperliquid. We talked about this in our last earnings call. On our last earnings call, this was something we thought would happen in the future. Today, we're seeing this as happening something live. But the idea that if somebody wants to compete with the two incumbents right now, they don't have to build their own back end. They don't have to build their own systems, order books, all the complicated things you have to build to be in exchange these days. You could build on top of hyperliquid a lot faster, a lot less expensive, and a lot more effective. I've alluded to this. This is just a small snippet of the various things out there in the world. But the TradFi press has figured this out. This is no longer a secret. I think when we announced this deal last July, I had a lot of my friends that I kind of grew up with in the industry asking me what the hell was hyperliquid. And I explained it and they still didn't quite understand. We went on CNBC early on and got some information. Some blank stares. Today, the world is figuring this out. We are proud to say that we've been ahead of this, but we're not surprised at all to see this happening, and we expect this that will continue going forward. Despite this press, despite the headlines we're all looking at here, and despite the people on this call who are listening who obviously know this well, we still think the understanding, the knowledge, and the sort of saturation of in the traditional financial markets is still extremely low. There are still lots and lots of people, most people that we deal with in our normal jobs that have not heard of this. I talked earlier about Hyperliquid versus other similar tokens. This chart is very telling. The buybacks that Hyperliquid has done over time has been more than these other tokens combined. This is just a simple graphical example of how successful this has been in returning actual cash flow to the token holders. Nothing in crypto compares right now, and we think that's going to continue. I want to point out some numbers on the left here. When we think about tokens outstanding, we do our best to equate that number to a shares outstanding number of a normal traditional publicly listed company. We think that number that equates here is 477 million tokens. When you take the 477 times the token price, that comes out to about $19 billion above here. That's how we think of tokens outstanding. That's how we think about market cap. There's a page in the appendix that lays this out in more detail. And we are working on getting a live version of this math on our website sometime in the not so distant future. We just think it's important when people think about hyperliquid and think about things like total market cap of the token that everyone's talking off the same page. And we're not sort of debating tokens outstanding, which is something we don't want to be debating on this topic. is also important. It's a theme that we've been touching on here. We've talked a lot about a number of the events in 2026 that have raised the awareness of hyperliquid. Here are some of the numbers that back that up. Ethereum and Solana continue to be highly correlated to Bitcoin. Hype has always been less correlated to Bitcoin, but it continues. And if anything, getting less correlated to Bitcoin as time goes on. We think that makes perfect sense for the reasons we've already discussed. The graph on my right, needless to say, is my favorite. This shows how our debt has performed versus other. Excuse me. This shows how hype has performed versus other of the large tokens, Bitcoin, Ethereum and Solana. The call outs we have on here are the obvious ones we talked about already. You see when silver spiked. That, I think, was a message to the world that hyperliquid is real, that something is going on here. And you can see what the token did versus the other major tokens. And that continued after the Iran conflict started, as you can see on this chart. When we think about growth going forward, we've had a page in this in the past, so I'm not going to spend too much time on it. But this is really where we see the four legs of the stool of future growth. Builder codes is something that has been around with Hyperliquid for a while. It's the ability for other people to... offer hyperliquid perps to their customers on their own platform. And I think just a few days ago, we saw Ledger offer this, which we're really happy to see. They seem like a perfect partner, along with people like Metamask and Phantom to be doing this. We think that over time, we'll be seeing other even more institutionalized partners coming online doing builder codes. HIP3, we've talked about quite a bit, bringing purpose for real world assets on chain quickly and relatively simply versus other alternatives of bringing real world assets on chain. We haven't talked about portfolio margin today, but we've talked about it in the past. This allows traders and market makers to more easily share their collateral across multiple positions. This is a subtle point. It's not something that every retail trader understands or cares about, but it's something that makes the system, makes liquidity, makes volumes smoother and better and larger on the hyperliquid blockchain. And then lastly, obviously, we talked about outcome markets as well. It's a whole new world of additional things that can be brought on Hyperliquid, and we're very excited about it. Let's talk a little bit about our company and some of the things we've done since we closed on December 2nd. Since we closed, we have deployed over $225 million of our capital. Early on, we used about $10.5 million of that to buy back our stock. This was mostly in the month of December. Our repurchase cost of those shares equated to $3.42 per share. Keep that number in your head for a second. We have required about 7.3 million hype tokens at an average price of $29.53. Right now, that price is well over $40. And we have sold about 6.2 million shares at an average price of $6.31 per share. I can't help but pointing out, I want to make this abundantly clear to everybody. We bought back our shares at 342 a share. We've sold shares at an average of 631 a share. That's something we obviously feel very good about. And in a lot of ways, this one page is sort of exhibit A of how DAX are supposed to work. When multiples are low, you buy back. When multiples get higher, you issue and you buy tokens along the way. I mentioned this earlier, but we're very excited to announce that we are going to be creating our own validator, which will be launching on May 11th. We have partnered with UNIT, arguably the most credible deployer in the hyperliquid system. UNIT, for anyone that doesn't know, is the company responsible for TradeXYZ. UNIT and TradeXYZ are two names and one and the same people and one and the same businesses. We think that What TradeXYZ has done over the last number of months has been incredibly impressive. They are by far the largest HIP3 deployer on Hyperliquid, and it seems like they are the perfect partner for us to be partnering with to launch our validator. So needless to say, we couldn't be happier about that. For us, what does this do? This creates opportunities for additional revenue streams from hyperliquid strategies. It improves our own stake in economics and it deepens our alignment in the ecosystem. As I mentioned a minute ago, we will be launching this on May 11th. And if you are a large hype holder, don't be surprised if I show up in your office and try to urge you to move your tokens to our validator. Obviously, we continue our disposition of the legacy Sonnet assets. We're happy to announce that we've really completed that at this point. What we have done was very much in line with what we expected when we did this initial transaction. I'm not going to go through every point here because it's relatively small and relatively immaterial information. to our larger company today. But I will say when the dust settles here, we are going to own 40% of the NUCO called Guidant Biotherapeutics. Over time, if and when they raise additional capital, that 40% number is likely to go down. But we obviously wish them the best. We own a good chunk of their company and we hope our 40% ends up being worth a lot of money one day. Last point, I jumped the gun on this earlier. in the discussion, but this shows both the correlation between a token and our stock price and our own stock price performance versus other debts. So it's interesting to see on the left, our correlation versus hype has actually gone up over time. And I think while on one hand, it might be surprising for anyone to think that our correlation was so low, it shows you why we had the opportunity to buy back as much stock as we did mostly early on after closing when we did it. It makes sense that over time that correlation goes up. So it also can make sense that that's going to level out at some and maybe even come down over time as we add more revenue streams that will be correlated, but far from perfectly correlated to the value of the hype token. So we don't think this ever gets to 100%. I'm not sure. what the sort of perfect run rate target for this is. I think 30% was too low where we started. We're happy to see this move in the right direction. And then on the right side, as I jumped the gun on earlier, when you compare the performance of our debt versus other debts in the large cryptocurrencies, we have outperformed by a lot. I think most of that outperformance has been because our token is outperformed. We don't have... delusions of grandeur around here about what we have done versus what the token has done. But we think a small amount of this that we're proud of is things that we have done that we've highlighted in the last few pages and how we've created value for our shareholders when those opportunities have existed. With that, I'm going to pass on to Brett, who's going to go into a bunch of the numbers around the quarter in more detail than I did.

Thank you, David. Hyperliquid Strategies Inc. had a strong third quarter, primarily driven by the appreciation of the price of the hype token. which as David had previously shown, significantly outperformed the other major cryptocurrencies during the time period. Specifically, hype appreciated from a price of around $25.48 on December 31st, 2025 to $36.60 on March 31st, 2026. That appreciation drove an unrealized gain on our hype holdings for the quarter of approximately $198.4 million. We continue to generate yield through our holdings, currently staking all of our hype tokens while we evaluate other possible yield enhancing strategies. Our current yield strategies generated staking revenue of $2.6 million for the quarter, and we also earned around $1 million of interest income on our cash and cash equivalents. The result was $202.4 million of what we refer to as treasury strategy income. For the quarter, we recognize $7.2 million in operating expenses, with a significant portion of that relating to the winding down and disposition of the majority of Sonnet's assets. The result? Income before taxes of $195.2 million. From a tax perspective, we recognized a $42.7 million deferred tax expense as required under GAAP, which relates to the difference between the fair value of our hype tokens and their tax cost basis. We note that this is not a cash expense we owe currently, but rather these taxes would only crystallize into a current obligation if we sold our hype tokens. which is not in line with our current treasury strategy. The result for the quarter was a net income of $152.5 million. For the nine months ending March 31st, 2026, our treasury strategy resulted in a $58.6 million loss. This loss is primarily driven by the $169.2 million loss recognized in the second quarter associated with the difference between the high price at the signing of the acquisition agreement with Summit last summer when the cryptocurrency market was hot and the price at the time of the closing in December, which reflected a softness in the overall market. The combination of the loss from the Treasury strategy and the one-time IPR&D write-off associated with the SONNET acquisition drove a pre-tax net loss of $104.9 million. Incorporating the deferred tax expense of $60.5 million, as described previously, drove a nine-month net loss after taxes of $165.4 million. Moving on to the next slide, the balance sheet, you can see that we spent the quarter using our cash and cash equivalents to continue to invest in our high treasury strategy. For the quarter, we spent approximately $160 million on high purchases. As a result, our cash and cash equivalents at March 31st is significantly lower than our balance sheet, than our balance was at December 31st. But, at $113.1 million still provides us a significant amount of flexibility to continue to both affect our treasury strategy and explore other opportunities. Our hype digital assets position on March 31st was approximately $689 million, reflecting an increase from December that relates to both the acquisition of new tokens, both from purchases and staking rewards, as well as the appreciation of previously owned and purchased tokens. On March 31st, 2026, we held approximately 18.8 million hype tokens, up from approximately 12.9 million in December. On the liability side, we continue to operate with no meaningful leverage. The obligations that exist primarily relate to the deferred tax liability that I have previously discussed, combined with the current obligations of both our operating business and the wind down and sale of the majority of Sonnet's assets. The result is an equity or net asset position as of the end of the quarter of approximately $743.5 billion. Moving on from our performance, we continue to believe it's important to be transparent about the execution of our treasury strategy and would like to once again highlight that we regularly provide updated relevant information on our website, hypestrat.xyz backslash dashboard. Once we file our 10Q, which we expect to occur in short order, Our dashboard will be updated with our latest reported figures as well as information on our share issuance and high purchases up through May 5th, 2026. We would also like to highlight that we have updated our adjusted net asset value information since our last call to provide two numbers. Our adjusted net asset value per share including the deferred tax liability and a calculation of the net asset value per share, excluding the deferred tax liability. In our continued outreach and discussion with investors, our understanding is that these numbers may provide meaningful information for their evaluation of our company, and in line with our continued belief in transparency, are being provided. And with that, I'll turn it back to David for some closing remarks.