Hyperliquid Strategies Inc

Good morning and welcome to Hyperliquid Strategies Earnings Conference call for fiscal year ending June 30, 2026. I'm Rob Diamond, Director of Corporate Affairs for Hyperliquid Strategies Inc. Participating in today's call are David Schamis, Chief Executive Officer, and Brett Beldner, Chief Financial Officer. 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 take a moment to read the disclaimers at the beginning of the slides that accompany this presentation as they contain important information.

Great. Thank you, Rob. As I think most people know, but it's worth repeating, Hyperliquid Strategies is the largest publicly traded digital asset treasury company for the HYPE token. We're listed on NASDAQ. The HYPE token obviously is the native Hyperliquid token on the blockchain. We have a strong balance sheet. As of August 18th, we have 29.4 million hype tokens, 133 million in cash and cash-like instruments, and we have no debt. I say this all the time, but we really only have four meaningful balance sheet items. We have cash, we have tokens, we have a deferred tax liability, and we have equity. David Ira Schamis, The first thing we've done is become a validator on the hyperliquid blockchain. We are one of the largest non-foundation validators on the blockchain, and we are working hard to explore other things that we can be doing, other initiatives we can be doing in the ecosystem to create value both for the broader ecosystem and for our shareholders. Jeroen Nieuwkoop, Brett Beldner I'll say a word about Hyperliquid generally. I think, again, from the first time we started doing these calls until today, Hyperliquid has gotten quite a bit more recognition in the world. But Hyperliquid is extremely well positioned and one of the most successful blockchain use cases out there. Perp, stablecoins, real-world assets, prediction markets. We're going to go into that as we go through this discussion. David Ira Schamis, Jeroen Nieuwkoop, Brett Beldner Hyper is now a top 10 token, number six, excuse me, number seventh largest token. And it is by far the largest token to have merged within the last five years. Hyperliquid is incredibly well positioned across all the most successful blockchain use cases out there. Perps, have generated over $5 trillion of volume across all the various venues for perps. But in a lot of ways today, it's hard to say hyperliquid without the word perp, and it's hard to say perp without the word hyperliquid. It's become such an important part of the perp world. and I think in a lot of ways Hyperliquid has done a tremendous amount to bring perks to the forefront of the sort of minds and thoughts of the investing world. The stablecoin world, which we all know, there's 305 billion of stablecoin market cap out there. Hyperliquid has made a major move in stablecoin revenue, as we'll talk about. RWA's, I say this all the time, but it's worth repeating. Lots of people in the crypto world for a long time have been talking about how real world assets are going to come on chain. I think that there's been a lot of theorizing and pontificating about it. There hasn't been a lot of actual action. That is not the case in the hyperliquid world. Since last November, there's been a tremendous amount of actual real world assets traded in PERP form on hyperliquid. Jeroen Nieuwkoop, Brett Beldner Thank you very much. to the next page, please. We'll dive a little deeper into each one of these things. PERPs, as we said, hyperliquid continues to dominate the decentralized perpetual futures trading. David Ira Schamis, Jeroen Nieuwkoop, Brett Beldner David Ira Schamis, has been through call options. Call options are widely used by lots of people in lots of places. I think I saw recently that a pretty high percentage of Robinhood's revenue these days are call options, which is totally understandable. The problem with call options are for every name, for every NVIDIA, for every Tesla, for every Microsoft, for every single individual ticker that exists, Jeroen Nieuwkoop, Jeroen Nieuwkoop, Brett Beldner David Ira Schamis, Jeroen Nieuwkoop, So there's an NVIDIA ticker, obviously, on the NASDAQ. There's one NVIDIA PERP on trade XYZ. Whether you want to trade 20 times leverage and you want to hold that position for 20 minutes, or whether you want to trade one times leverage and hold that position for six months, it's the same contract. It's the same liquidity pool. It's Bid-ask spreads are much, much tighter. And in the end, the cost to trade to the end user, to the customer, is materially different. And that is a very, very big difference. And that is a perfect example of technological advancements in the financial world, like PERPs, actually benefiting the end user in a big way. There are market makers out there who enjoy those widespreads that do not like these as much as you would expect. On page 8, we talk about stablecoins. Stablecoins have already made a very large splash in this world. Circles IPO last year was incredibly successful and brought what stablecoins are to the forefront of the investment community. USDC, which is Circle's stablecoin, has been a hallmark of the hyperliquid exchange from the beginning. I don't think 100% of the pairs traded on hyperliquid are USDC, but a very high percentage of them are. Initially, 100% of that revenue that was generated from those stablecoins sitting on the hyperliquid ecosystem went back to Circle. During 2026, it was announced that Hyperliquid had recut a deal where 90% of that reserve yield is actually going back into the Hyperliquid ecosystem, which is basically... Jeroen Nieuwkoop, that has the potential, as you see in some of these numbers here, to move the needle quite meaningfully for the hyperliquid ecosystem and for the value of the tokens going forward. Go to the next page, nine, real-world assets. Again, a year ago, there was not one penny of real-world assets traded on hyperliquid. Today, it has very much become the full story. David Ira Schamis, Jeroen Nieuwkoop, Brett Beldner David Ira Schamis, Jeroen Nieuwkoop, Thank you. Hyperliquid has become a place not only where existing real world assets like Tesla or Nvidia have been trading, but free IPO listings have come about on Hyperliquid where we saw some real volume leading into the IPO. I'm not going to deconstruct this whole chart because it's a bit confusing, but basically the lines on the left are where these various names were trading on hyperliquid pre-IPO. The lines on the right are where the underlying spot trading happened post-IPO. And the four dots in the middle are where these four IPOs were priced. Jeroen Nieuwkoop, Brett Beldner Thank you, David. David Ira Schamis, David Ira Schamis, on people those new ventures are willing to hire, employment, et cetera. It is real. It is important. And if hyperliquid could have an impact on reducing that IPO discount for companies going forward, I will personally find a lot of satisfaction out of that after years of me talking about this. But again, we love this chart. We love this page. And I think it's actually worth staring at for a few minutes even after this call. to go to the next page. As we talked about a minute ago, outcome markets on page 11. is Hyperliquid's way of talking about prediction markets. This is something that went live on Mainnet on Hyperliquid on May 2nd, though it was only their own markets that they implemented. It is expected to go permissionless shortly. What it means to go permissionless in this case is the way HIP3 allows others to build their own markets, their own markets on hyperliquid. That will be the same case for outcome markets. So I don't think anyone thought that the team, the hyperliquid team in Singapore was going to be the right people to be deploying markets for who might win the Senate race in Michigan this November. or, you know, all the other, you know, whether congressional salaries will be increased or the other hundreds of different things that people take positions on, on Polymark and on Calshi. But the idea is for third-party builders, third-party deployers who have an expertise, who can draw money who can draw liquidity and volume and market makers in these things to be deploying them and to use the underlying hyperliquid technology. We also expect when these markets are up and running to be both significantly less expensive than the two incumbents and to also have a significantly better trading experience than those are for the actual people doing the trading. Let's go to page 12. This is, again, no secret to anybody, but hyperliquid has consistently been amongst the highest on-chain revenue generators of all the blockchains out there. The chart in the middle is quite amazing. I talk about this all the time, but in the fourth quarter of 2024, there was $14 million of revenue. By the third quarter of 2025, we see $324 million. quite an amazing growth. Over time, you see the different components of that revenue here. We've seen it come down since the third quarter of 2025, but it's worth talking about that. There's no doubt since then, up until quite frankly this week, we've seen a bit of a crypto winter and crypto has been in a bit of a bear market Jeroen Nieuwkoop, Brett Beldner Thank you for having me. Thank you very much. Again, something we talk about a lot, but from the economic value numbers on the page earlier, turning into specific revenue dollars for hyperliquid, you can see, obviously, these numbers are highly correlated to the page earlier. 99% of these revenue dollars are used to repurchase the token. Those token repurchases happen live, Jeroen Nieuwkoop Here, there's none of that discussion and debate. It literally happens every day. It's programmatic, it's live, and it's 99% being used to repurchase the token. It's really one of my favorite features of the whole Hyperliquid system. David Ira Schamis, David Ira Schamis, Jeroen Nieuwkoop On the right, we show the chart of the hyperliquid token value relative to Bitcoin ETH. And so it's really interesting that that silver spike in January of last year, late January of last year, there was quite a bit of volatility and trading activity in silver. Hyperliquid had recently listed silver the way it had recently listed oil not long before that. David Ira Schamis, Jeroen Nieuwkoop, Brett Beldner Obviously last week, for anyone that missed it, when the president commented on hyperliquid in his press conference, that also was obviously a breakout moment that it will be hard for us to forget. Page 15, it's worth pointing out here that the hype token is firmly established as a top 10 token. It shows a $17 billion of circulating value that is an apples to apples comparison to these other tokens that are out there trading. The footnote here is actually worth reading. We do our own version of what we think the quote market cap is. Jeroen Nieuwkoop Jeroen Nieuwkoop, to refresh everyone's memory, our fiscal year is June 30th, just to keep everybody on their toes. So during, we closed our transaction on December 2nd of 2025. Since then we have raised close to 650 million in net proceeds through issuances of stock in the open market. about 76 million shares have been issued. The average price of our issuance has been $8.50 and the average MNAP at the time of issuance is 1.15x. We have deployed a significant amount of cash into buying tokens over this period. The average price was about $46.77, which somewhat coincidentally equates very close to the tokens We originally acquired as part of the initial deal that was announced last July. They were both out of around the $46 level. To state the obvious, every single day that goes by, that average will be ticking up as long as we're buying more tokens because the token price is a lot higher. So I don't want anyone to be too surprised at our next earnings call when that 46 number is higher. Frankly, I hope it's higher because if it's lower, that would mean Jeroen Nieuwkoop, Jeroen Nieuwkoop in an NAV accretive way and buy more tokens. And when that multiple is low, we're able to use our cash reserves to buy back the stock that is also NAV accretive. While a steady 1.0 or 1.1 MNAV would be a nice relaxing way to live a life, it actually would not create the same amount of value accretion opportunities that we've had when we've done this. If you go to page 18, we've talked about this a lot already, but obviously over the period of the last quarter, the NAV has moved quite a bit over time. Our cash value has gone up. Our hype treasury has gone up an awful lot by $1.2 billion. And the deferred tax liability has increased along with that. By the way, it's important to point out Any time we talk about NAV, we generally are talking about it, including the deferred tax liability, meaning deducting the deferred tax liability from the NAV. I think that is both accurate from a gap point of view, and it is also the right way to think about it from a value point of view. If and when the time ever came where we were selling tokens and liquidating the debt, we would be paying that tax. So that is a real liability that may come about one day. On the other hand, until we were selling tokens, until we were in that mode, that is not a liability that we have to pay today. That is not a liability that accrues any interest. It is not unreasonable for someone to also look at our NAV while adding the deferred tax liability back to the NAV, which would obviously increase the value of the NAV and reduce our MNav at any given point. If you go to page 19, again, we like thinking about correlations around here. We look at how our stock is correlated to hype. Interestingly, very early on, there was much less correlation than one would expect. That had a lot to do, I think, with just getting our deal closed the month of December, some fair amount of probably share turnover in that month. And also, it was a pretty grim month in general for crypto. Hype, I think, was in the 20s and 30s for much of that month versus where it was today. Hype was quite a bit higher before December. So it was kind of a funny time to close this deal. But those correlations have come up a lot. As you see, I don't think 100% is necessarily our goal. I think 100%, we're not, as I said before, we're not an ETF, and we don't hope to be an ETF. But generally speaking, this number, the correlation being higher rather than lower is the right thing to us. And generally speaking, the direction of the line on this chart feels very good to us. Jeroen Nieuwkoop, Maybe not 100%, but mostly close to entirely because of the underlying token performance. And needless to say, we made a good choice with choosing the hype token going in. But most of this outperformance has been the hype tokens outperformance. But, you know, we hope to add a little bit to it by our good work and our hard work around here. Jeroen Nieuwkoop, Brett Beldner I certainly hope over time we continue to move up these ranks. I think as hyperliquid itself becomes more and more relevant and more and more important in the not just crypto world, but the asset trading world in general, I would assume as its market cap grows, we will see our name moving higher on this list over time. Maybe one day we'll be giving Michael Saylor a run for the money, his money on the total value of our treasury. And with that wild statement, I will pass this over to Brett to talk about some of the financial aspects of the quarter.

Thanks, David. And good morning, everyone. It is my pleasure to present to you our financial results for our fiscal year ending June 30th, 2026. The context of my discussion and our performance for the year tracks the transition from HSI agreeing to issue a pipe last year through the acquisition of a biotech company in December to becoming the largest digital asset treasury company focusing solely on supporting the hype token and the hyperliquid ecosystem. For the year, we generated approximately 553 million of income related to our treasury assets, being our tokens and cash-to-cash equivalents that we refer to as our treasury strategy. The income was primarily driven by unrealized gains on our hype tokens, both from the appreciation of the tokens that we received at the acquisition closing, but also from our effective acquisition strategy of purchasing approximately 16.5 million hype tokens at optimal prices. All of our hype tokens are staked, which, combined with any revenues we received from our validator, resulted in $9.5 million of staking and validator revenues that were primarily recognized in the fourth quarter as our holding spread. Our operating costs for the year were approximately $14 million with a significant decrease between the third and fourth quarter after we divested the legacy biotech business and became solely focused on the hyperliquid treasuring strategy business. In addition, for the year we recognized $35.6 million of IPR&D write-off expense related to the business combinations and other expense of $14.3 million. 12.2 million of which related to an accounting charge required to be recognized based on the structure of our equity facility. This expense was a non-cash charge with an offset to stockholders' equity and had no impact on our MNF. The final component is a deferred tax expense of approximately $184 million, which related to the embedded unrealized taxable gain of our hype tokens as required under GAAP. This is not a current obligation, as David said. Rather, it only arises in the future if we decide to sell all of our tokens, which we currently have no desire to do. Moving on to the next page, our balance sheet, we continue to keep it simple. As of June 30th, 2026, we have a little over $2 billion of assets and no debt. As of June 30th, our assets were comprised of approximately 29.3 million Hype tokens valued at around 1.9 billion, and approximately $150 million of cash-like instruments, which included cash, short-term treasuries and USDC. We believe it's important to retain cash to be able to take advantage of treasury opportunities as they arise, whether that is buying tokens at depressed prices or repurchasing our own stock when we trade below certain and that multiples. We continue to recognize a deferred tax liability, approximately $184 million, as required under GAAP for the embedded taxable gain, which, as discussed, is not a current obligation and only becomes one if we decide to sell our tokens. The net result is an extremely strong capital position. Stockholders' equity of approximately $1.9 billion, up over 150% from last quarter due to both the appreciation of hype and the net capital raised from issuing equity. I will now turn the presentation back over to David for some closing remarks.

Thanks, Brett. I'll make a couple minor comments before we go over to Q&A. But in the eight or so months since we have closed our deal in public, as I said before, we've seen tremendous volatility, both in the underlying token and in our MDAF. and I have to say it's been awfully interesting because at different moments over this period, we've had people publicly calling us geniuses, thinking we're doing an unbelievably great job at what we're doing. We've also had people calling us idiots Robert R. Reilly, Jr. We do not want to get overly ebullient when things look great. We don't want to get overly negative or overly depressed when things don't look as great. And again, the word we try to repeat around here over and over again is discipline. One of those disciplines, as I'm sure you'll see and you've noticed, is that we keep a fair amount of cash on the balance sheet. I think that we have never had to sell any call options against our tokens. We've never been painted into a corner where we need to generate cash and do unnatural things with our treasury. And we think that is awfully important when it comes to running a debt in a disciplined and successful way. Having a lot of cash gives us the opportunity to buy our stock when the token value goes very low, and it gives us the opportunity to potentially find other things in the ecosystem to do that we think can generate revenue that would, over time, justify a long-term MNAV well above one. I think that's all I would say as far as closing remarks, and I am eager to have some questions from the community.

Thank you. At this time, if you would like to ask a question, please click on the raise hand button, which can be found on the black bar at the bottom of your screen. When it is your turn, you will receive a message on your screen from the host allowing you to talk, and then you will hear your name called. Please accept, unmute your audio, and ask your question. We will wait one moment to allow the queue to form. Our first question will come from Gareth Cassetta with Cantor. Please unmute your line and ask your question.

Hi, guys. Thanks for taking the questions. There were some reports out that your team is working with the Hyperliquid Policy Center on a path to the U.S. So I'm wondering if you could talk about what that partnership involves and maybe how we should think about a potential U.S. product here. Do you think Hyperliquid's front end might be just turned on for U.S. persons or maybe the back end being distributed through regulated front ends? And ultimately, if the exchange has to KYC to kind of gain access to the U.S., Do you think it will have to do that globally for everyone?

Hey, Gareth. Thanks for the question. Certainly a good question. Didn't take long to get to this, so I appreciate it. Look, really, all I could say on this topic right now, all I want to say on this topic right now, is it's clearly no secret that hyperliquid is working to get into the U.S., If there was any confusion, the president cleared that up last week for everybody. And as you'd expect, we are willing and eager to be as helpful as we can in any way we can. And we're also perfectly happy to not be helpful and not be involved if that's how it ends up playing out. So, you know, look, I don't want to say anything more than that. I don't want to preempt anything more. But again, it's no secret they're working on it. And as I said, we're eager to be as helpful as we can in any way we can for obvious reasons. And I both appreciate the question and I hope you understand that's all the detail I can really get into right now.

Totally. No, that's very helpful. And then maybe a more technical one on AQA V2. I'm wondering if the fact that kind of all HIP3 and HIP4 markets now are having to be backed by USDC, would that end up impacting the overall stablecoin growth of the platform? For example, if more HIP3 and HIP4 markets are launched, would we assume that the stablecoin supply should grow with those new markets as well?

David Ira Schamis, Jeroen Nieuwkoop, Brett Beldner

The one benefit, though, of hyperliquid as well as you are allowed to cross the lateralized positions. So it may not necessarily be a one for one, but it certainly should increase the overall price.

Okay, great. Really helpful. And then maybe one last one. So I know we've kind of had these two catalysts here with the U.S. announcement or potential announcement and then also AQA V2. But do you think that these two opportunities are being priced into the token even after kind of the recent gains over the past two weeks?

You know, it's really hard to know, obviously. It's... After President Trump's announcement at the press conference, obviously the token jumped up quite a bit. So clearly the market noticed. It's not like the market missed that. But look, we're obviously very bullish long term. Jeroen Nieuwkoop, Brett Beldner take in all the information that's out there. But we think the conglomeration of all that is a token with a lot of upside.

Great. That's really helpful. Thanks for the questions and great results.

Thank you.

Our next question will come from James Micklery with Chardon. Please unmute your line and ask your question.

Yeah, thank you. Good morning. A couple of questions. David, you've spoken, I think you mentioned twice, expanding your investments into the ecosystem. I was hoping you could elaborate further on timing and what that might look like. And then secondly, for Brett, with the OPEX down quarter to quarter, are we at a new steady state or is there anything that we should expect on the trajectory of OPEX going forward? Thank you.

Jeroen Nieuwkoop, Jeroen Nieuwkoop, We are eager to find additional paths of revenue over time, but we're not crazy about it, right? We're not going to say yes to everything that comes along. Traditionally, for the last 25 years, I've been in the investing business where I say no to 95 plus percent of the things that come along. So we're probably running at about that ratio, to be honest. And that's not a bad thing. If you say yes to everyone that asks something, you're going to find lots of ways to lose money.

Yep, and on part two of your question, the answer to that is yes. We are in a more steady state that fourth quarter should be more representative of our operating expenses going forward. With that being said, as David was just discussing, as opportunities and investments and other things that we consider arise, that number may obviously change based on you know, whatever costs relate to that. But regarding steady state of operating, yes, we should be at a, you know, 4 million for the quarter seems reasonable. And we continue to focus on costs and we'll continue to do so.

To beat a dead horse here, I don't mean to beat a dead horse, but the things we're looking to put our money to beyond just our data activities are things where we see real asymmetric upside, things we can maybe spend a little bit of money on. and have huge potential upside either directly for our shareholders or for the ecosystem in general, or both, or most likely are things we're excited about. Things we can put a little bit of money out and get a 15% return on a small amount of money, to be honest, doesn't excite us that much. It's just not worth it.

It's very helpful. Thanks, guys.

Our next question will come from Matthew Galinko with Maxim Group. Please unmute your line and ask your question.

Hey, good morning, guys. Thanks for taking my questions and congrats on all the good work. Maybe if we could focus a little bit on the single margin account concept. Is that having an impact today as far as adoption or do you think that has a bigger impact after we get permissionless outcomes?

Jeroen Nieuwkoop is for market makers to be able to sort of easily and efficiently make those markets for these different asset classes that might be on different assets that might be on the exchange, the hype exchange, hyperliquid exchange in PERP form. The easier you can make it for people to do that, the more efficient you can make to do it, the more people you'll attract, the more capital you'll attract, the lower the bid-ask spreads will be, the higher the liquidity will be. Jeroen Nieuwkoop, Brett Beldner with 12 people working there and how quickly they're able to turn out things like that. You compare that to any of the major incumbents. On one hand, the New York Stock Exchange has been around for 234 years. On the other hand, the New York Stock Exchange has been around for 234 years. and adding any sort of improvements in the trading experience like this for these large incumbents is such a technical lift. It's such a timing sink. It's such a cost relative to what the hyperliquid team is able to do. It's really, really impressive to see what a team with sort of a fresh slate, a white piece of paper can do in a short period of time. So that's a long answer to your question. I think the answer is yes.

Well, very good. Thanks for the caller. And maybe just a quick follow-up. You touched on the two ways you might think about MNAV, including or excluding the deferred tax liability. I'm curious, for your treasury operations, which version do you use, if one at all? Thanks.

Yeah, I would say, and I've said this a few times, and it's always important to sort of repeat and also to... David Ira Schamis, Jeroen Nieuwkoop, Brett Beldner If we were optimizing for things when we were issuing stock, I would say two things we like to see. One is that our net proceeds from that issuance is above 1.1 times MNAV. and above one times MNAV, including with the DTL ad bet. So this is both an art and a science. We're in these markets. We're seeing how things are trading. We're making decisions on the fly. We think we're making good decisions way more than we're making bad decisions. But we're looking at both. Primarily, it's the straight MNAV, but we are definitely not forgetting about the MNAV plus DTL, and we're focused on that as well. And over time, those numbers will diverge further, hopefully, as the value of the hype token goes up and our gains in the things we've already bought increases. So we're constantly looking at that.

Appreciate it.

Once again, if you would like to ask a question, please click on the raise hand button, which can be found on the black bar at the bottom of your screen. Our next question will come from Brian Vieten with CBIRT. Please unmute your line and ask your question. Brian, you are unmuted. Please unmute. Please ask your question. Brian, your microphone is currently muted. Please unmute and ask your question.

Brian, if we miss you today, feel free to reach out. We're happy to do this privately. So happy to wait a few more seconds.

We currently have no other questions, so I can go ahead and pass the call back to Hyperliquid Strategies for any closing remarks.

David Ira Schamis, Jeroen Nieuwkoop, Brett Beldner Listen to this and hopefully you found it interesting. As we've said many times, a big part of our job is interacting directly with shareholders. So I encourage everyone to reach out if they have stuff they want to talk about privately anytime. Thank you all for joining.