Hyperliquid Strategies Q3 Earnings Call Highlights

Key Points

• Hyperliquid Strategies posted a profitable fiscal third quarter, with net income of $152.5 million, largely driven by a $198.4 million unrealized gain from HYPE token appreciation plus staking and interest income.
• The company continues to build its HYPE treasury, holding about 18.8 million tokens worth roughly $689 million at quarter-end, while also keeping $113.1 million in cash and spending about $160 million on HYPE purchases during the quarter.
• Management said it plans to launch its own validator on May 11 to boost staking economics and expand ecosystem participation, while also highlighting future growth areas like real-world assets via HIP-3 and prediction markets through HIP-4.

Hyperliquid Strategies NASDAQ: PURR reported a profitable fiscal third quarter, with results driven primarily by appreciation in the HYPE token and continued staking revenue, executives said on the company’s third-quarter 2026 earnings call.

CEO David Schamis said the company remains “by far the largest digital asset treasury company for the HYPE token,” with more than 20 million HYPE tokens and more than $100 million in cash currently on its balance sheet. He said the company is continuing to look for ways to expand earnings while participating in the Hyperliquid ecosystem, including through the planned launch of its own validator.

CFO Brett Beldner said HYPE appreciated from about $25.48 on Dec. 31, 2025, to $36.60 on March 31, 2026. That increase drove an unrealized gain of approximately $198.4 million on the company’s HYPE holdings during the quarter.

Quarterly Results Driven by HYPE Appreciation

Beldner said Hyperliquid Strategies generated $202.4 million in what it calls treasury strategy income during the quarter. That included the unrealized gain on HYPE holdings, $2.6 million of staking revenue and roughly $1 million of interest income on cash and cash equivalents.

The company recognized $7.2 million in operating expenses during the quarter, with a significant portion tied to the winding down and disposition of the majority of Sonnet’s assets. Income before taxes was $195.2 million.

Hyperliquid Strategies recorded a $42.7 million deferred tax expense under GAAP, which Beldner said relates to the difference between the fair value of its HYPE tokens and their tax cost basis. He emphasized that the deferred tax expense is not currently a cash obligation and would crystallize only if the company sold its HYPE tokens, which he said is not in line with its current treasury strategy.

Net income for the quarter was $152.5 million.

For the nine months ended March 31, 2026, the company reported a $58.6 million loss from its treasury strategy, primarily tied to a $169.2 million loss recognized in the second quarter related to the difference between HYPE’s price when the Sonnet acquisition agreement was signed and its price at closing. Including a one-time acquired in-process research and development write-off related to the Sonnet acquisition, pre-tax net loss for the nine-month period was $104.9 million. After a $60.5 million deferred tax expense, nine-month net loss was $165.4 million.

Balance Sheet and Treasury Activity

Beldner said the company spent approximately $160 million during the quarter on HYPE purchases. Cash and cash equivalents were $113.1 million as of March 31, down from Dec. 31, but still providing “a significant amount of flexibility,” he said.

The company’s HYPE digital assets position was approximately $689 million at March 31. Hyperliquid Strategies held approximately 18.8 million HYPE tokens at the end of the quarter, up from approximately 12.9 million in December, reflecting token purchases, staking rewards and token appreciation.

Schamis said that since closing its transaction on Dec. 2, the company has deployed more than $225 million of capital. That included about $10.5 million used to repurchase stock at an average cost of $3.42 per share, mostly in December. The company also acquired about 7.3 million HYPE tokens at an average price of $29.53 and sold about 6.2 million shares at an average price of $6.31 per share.

Schamis said the activity showed how digital asset treasury companies are “supposed to work,” with buybacks when multiples are low, share issuance when multiples are higher and token purchases along the way.

Validator Launch and Ecosystem Strategy

Schamis announced that Hyperliquid Strategies plans to launch its own validator on May 11 in partnership with Unit, which he described as “arguably the most credible deployer in the Hyperliquid system.” Unit is responsible for Trade XYZ, which Schamis said is the largest HIP-3 deployer on Hyperliquid.

Schamis said the validator is expected to create additional revenue opportunities, improve the company’s staking economics and deepen its alignment with the Hyperliquid ecosystem.

The CEO also discussed the company’s continuing interest in Hyperliquid’s role in bringing real-world assets on chain. He pointed to HIP-3, which enables real-world assets to trade in perpetual futures form on Hyperliquid, and said five of the top 10 trading pairs on the platform include real-world assets such as the S&P 500, the equivalent of the Nasdaq 100, two oil contracts and gold.

Schamis cited oil and metals trading as examples of Hyperliquid’s growing relevance. He said one oil contract had $710 million in 24-hour volume on April 29 and noted that oil trading volume on Hyperliquid rose after the Iran conflict began late on a Friday, when traditional oil trading venues were closed.

HIP-4 and Prediction Markets

Schamis said Hyperliquid is also moving toward HIP-4, which he described as outcome markets, also known as prediction markets. He said the feature is in early stages, with a few markets launched as proof of concept.

He said HIP-4 should not be viewed only as competition with Kalshi and Polymarket, but also as a way to address markets including options and insurance. Like HIP-3, Schamis said HIP-4 is expected to allow deployers to build on Hyperliquid permissionlessly.

During the question-and-answer portion, Schamis said institutional awareness of Hyperliquid varies widely. Some investors are deeply familiar with the ecosystem, while others require basic education on what Hyperliquid is. He said Hyperliquid Strategies sees part of its role as educating traditional finance investors about the platform.

Cash Levels, Buybacks and Share Issuance

Asked about the company’s cash balance, Schamis said management views $25 million as a “bare minimum” cash level, intended to cover multiple years of operating expenses so the company would not need to issue equity in a stressed environment. He said the appropriate cash level above that remains under discussion and depends on opportunities in the ecosystem, potential HYPE purchases during drawdowns and other factors.

Schamis also said the company would consider selling HYPE tokens to buy back stock if its shares traded at a meaningful discount and cash had fallen to a minimum level, though he said the company does not want to sell tokens and does not view doing so as beneficial under normal circumstances.

On the company’s previously discussed 0.9x to 1.1x adjusted net asset value framework for share repurchases and issuance, Schamis said there has been no change. He added that the framework is “somewhat art, not science,” and could evolve if the company builds additional revenue-generating businesses within the ecosystem.

Schamis closed the call by saying the company intends to continue providing updated information through its website and other channels, adding that timely disclosure remains a central part of management’s approach.

About Hyperliquid Strategies NASDAQ: PURR

Hyperliquid Strategies Inc is a digital asset treasury company whose primary focus is to maximize shareholder value through accumulating HYPE, the native token of Hyperliquid, a high-performance blockchain custom-built to house all of finance. Hyperliquid Strategies Inc, formerly known as Sonnet BioTherapeutics Holdings Inc, is based in NEW YORK.

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