Hyperliquid Strategies (NASDAQ:PURR) executives used the company’s second fiscal quarter earnings call to reiterate that the firm operates as a digital asset treasury company focused on holding the HYPE token, while outlining recent capital deployment activity, a financial loss driven largely by token price movements, and new plans to provide investors with more frequent transparency into its holdings and net asset value.
Strategy: access to HYPE and NAV-per-share focus
Chief Executive Officer David Schamis said the company’s “job is to hold the HYPE token,” and described Hyperliquid Strategies as the largest digital asset treasury (DAT) for HYPE “by a pretty wide margin.” He noted that HYPE is “still not easily accessed, particularly in the United States,” and said the company’s role “at least for now” is to enable access for investors on a major U.S. exchange.
Hyperliquid ecosystem highlights and token economics
Schamis said Hyperliquid continues to move quickly in expanding its crypto business and, in his view, progressing toward bringing real-world assets on-chain. As one example, he cited a recent trading day in silver in which “2% of the world’s trading volume happened on Hyperliquid,” after silver had been available on the platform for about three weeks.
He also discussed platform developments over the past year, calling out several initiatives that he said have rolled out within a 12-month span:
- Builder Codes, which he said allow third parties to tap into Hyperliquid liquidity and potentially add volume and fees.
- HIP-3, described as enabling third parties to build perpetual exchange front ends for real-world assets without building the back-end central limit order book infrastructure.
- HLP, which he said lets users share collateral across positions, aimed at improving market maker efficiency and liquidity.
- HIP-4, extending the concept toward “options and prediction markets,” allowing others to build front ends while using Hyperliquid infrastructure for the back end.
Schamis also highlighted token economics, stating that “99% of the revenues of the blockchain are being used to repurchase and burn the tokens,” which he contrasted with other crypto projects.
Treasury framework and recent deployment
Schamis described the firm’s treasury approach as “an art, not a science,” framing decisions around buying HYPE tokens, repurchasing shares, or issuing shares as market conditions change. He said the company’s “number one goal” is NAV per share accretion, and provided a general framework: when the market multiple to NAV (MNAV) is high, the company would consider selling shares into the market; when MNAV is low, it would consider buying back shares; and it would buy or potentially sell HYPE depending on whether management views the token as trading below or above fundamental value.
Schamis said the firm has been consistently bullish since closing, stating that management believes HYPE is “well below its real fundamental intrinsic value.” He also compared the token to traditional valuation concepts, saying that when thinking in terms of price-to-earnings, HYPE “trades well below the S&P 500” and below crypto comparables, in his view.
Providing an update “as of last week,” Schamis said the company had deployed about $140 million since closing. That included approximately:
- $10 million used to repurchase the company’s shares at an average price of $3.42, totaling over 3 million shares and bringing adjusted fully diluted shares to about 150 million.
- $130 million used to purchase HYPE tokens at an average price “a little under” $26 per token, totaling about 5 million tokens.
He said total HYPE held was about 17.5 million tokens, and that the company had about $125 million of capital remaining for treasury deployment or potential stock buybacks, excluding capital reserved for operating costs. He also noted the company has an equity line of credit (ELOC) available for additional share issuance “when we see the opportunity.”
Financial results: token price decline and transaction accounting
Chief Financial Officer Brett Beldner reviewed results for the first six months of fiscal 2026 (ending Dec. 31, 2025) and said reported performance was driven primarily by (1) changes in the value of HYPE between signing and the reporting period end and (2) the acquisition of Sonnet.
Beldner said investor commitments totaled approximately $888 million in cash and HYPE. The value of HYPE contributions was fixed at signing at around $46.37 per token, but by the December closing the token price had declined to around $32.86, resulting in an accounting loss on the HYPE commitment of about $169 million.
He said the Sonnet acquisition was treated as an asset acquisition, and that excess purchase price and related transaction costs over the fair value of acquired net assets were recorded as in-process research and development costs of $35.6 million, which were written off at closing.
For the period after the transaction closed through Dec. 31, the company recognized approximately $1.4 million of combined interest income and staking income. Because the company records HYPE at fair value with changes flowing through income, Beldner said the post-closing decline in HYPE generated an unrealized loss of approximately $93 million for the period between closing and year-end.
He also cited a tax impact: the company received contributed HYPE at an investor’s tax basis, and the difference between the company’s tax basis and HYPE’s fair value on Dec. 31 resulted in an $18 million deferred tax liability and corresponding deferred tax expense. Overall, Beldner reported a $318 million loss for the six months ended Dec. 31, 2025.
Balance sheet, staking, and new transparency dashboard
Beldner said the two largest assets at quarter end were cash and cash equivalents and HYPE tokens. Upon closing, the company received about $300 million in cash from investors and about $10 million from Sonnet. As of Dec. 31, the company had approximately $282 million in cash and cash equivalents, part of which it expects to maintain for operations, with the remainder eligible for the treasury strategy.
He said the company reported $327 million in HYPE digital assets at fair value, representing approximately 12.9 million HYPE tokens owned as of Dec. 31, consisting of investor contributions, staking rewards, and HYPE purchased as part of the treasury strategy. On liabilities, he said the company had no debt beyond short-term liabilities, and that the deferred tax liability reflected an estimate of taxes that would apply if the company sold all HYPE based on the Dec. 31 token price, while noting the company currently has “no intent to sell” HYPE.
On staking, management said that as of the call, 100% of HYPE holdings were staked with Anchorage, the company’s custody provider, and that the expected steady state is to keep 100% staked unless circumstances change or a better risk-adjusted opportunity emerges.
Beldner also said the company plans to launch a website dashboard intended to address what management sees as a lack of transparency in the digital asset treasury market outside of periodic SEC reporting. The dashboard is designed to show items such as the fair value of the HYPE portfolio, market capitalization, cash, an estimated deferred tax liability, and an “adjusted net asset value” that is compared to the stock price to produce a trading multiple of adjusted NAV. He said some figures (such as token and stock prices) will update in real time, while treasury activity will update weekly with a one-week lag, and management expected the dashboard to be live by the end of the day.
In the Q&A, Schamis said the company is evaluating the possibility of becoming a validator as a medium-term goal to be more engaged in the ecosystem and to support having an operating business beyond holding tokens. He said the cost to get a validator effort “up and running will not be significant,” while emphasizing the need for operational perfection. He also said the CEO makes the ultimate decisions on treasury actions, informed by ongoing discussion among management and frequent updates to the board.
Schamis also addressed the Clarity Act, stating the company had no special insight into timing or likelihood of passage. He said he does not expect perpetuals or decentralized exchanges to be explicitly allowed in the act, but said the company hopes there may be paths for regulatory action over time.
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.
