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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 Schamis, and then from our CFO, Brett Beldner. 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 Schamis, 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 of 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 gonna talk obviously about that more as we go forward.

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, 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. 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 gonna talk more about it today. Unlike many relatively young platforms, both in crypto and outside of crypto, Hyperliquid generates a significant amount of cash flow.

As we'll see in a few pages from now, nothing else in crypto really compares. As many have commented on recently, it is 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. 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 1 penny of outside capital. I referred to this a second ago. This will keep coming up in our discussion.

HIP-3, which is the term used for bringing real world assets on chain in perps 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 of it yet because it didn't happen yet. HIP-3 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 traditional venues where oil trades was closed. You could 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. It obviously continued meaningfully after that. We're at a point now when you look at these volume numbers. You look at what's gone on in the world, it's impossible to say that Hyperliquid has not very quickly become an important part of the oil trading world. I think that lots of the traditional venues have noticed this. The amount of interest we've gotten from what I'd 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 HIP-3, the team in Singapore is bringing us HIP-4. HIP-4 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 as just a proof of concept. 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 Kalshi and Polymarket, even though people love talking about Kalshi and 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 HIP-3, HIP-4 ultimately will be set up where deployers can permissionlessly build on Hyperliquid. We talked about this in our last earnings call.

In our last earnings call, this was something we thought would happen in the future. Today, we're seeing this is happening, something live. 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 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 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 gonna continue. I wanna 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 that we don't wanna be debating on this topic. It's 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 all the reasons we've already discussed. The graph on my right. Needless to say, is my favorite. This shows how our DAT 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. You can see what the token did versus the other major tokens. 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. I'm not going to spend too much time on it. This is really where we see the four legs of the stool of future growth. Builder Codes is something that has been around for Hyperliquid for a while. It's the ability for other people to offer Hyperliquid perps to their customers on their own platform. 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. HIP-3, we've talked about quite a bit, bringing perps 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.

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 acquired about 7.3 million HYPE tokens at an average price of $29.53. Right now, that price is well over $40.

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 wanna make this abundantly clear to everybody, we bought back our shares at $3.42 a share. We've sold shares at an average of $6.31 a share. That's something we obviously feel very good about. In a lot of ways, this one page is sort of exhibit A of how DATs 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, we're very excited to announce that we are gonna 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 Trade XYZ. Unit and Trade XYZ are two names, and they're one and the same, people and one and the same, businesses. We think that what Trade XYZ has done over the last number of months has been incredibly impressive. They are by far the largest HIP-3 deployer on Hyperliquid, and it seems like they are the perfect partner for us to be partnering with to launch our validator. 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. 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 gonna go through every point here because it's relatively small and relatively immaterial to our larger company today. I will say, when the dust settles here, we are gonna own 40% of the new co called Guidant BioTherapeutics.

Over time, if and when they raise additional capital, that 40% number is likely to go down. 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, this shows both the correlation between our token and our stock price and our own stock price performance versus other DATs. It's interesting to see on the left. Our correlation versus HYPE has actually gone up over time.

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, though 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. 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.

On the right side, as I jumped the gun on earlier, when you compare the performance of our DAT versus other DATs in the large cryptocurrencies, we have outperformed by a lot. I think most of that outperformance has been because our token has outperformed. We don't have delusions of grandeur around here about what we have done versus what the token has done. 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. I'm gonna pass on to Brett, who's gonna 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 recognized $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 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 HYPE price at the signing of the acquisition agreement with Sonnet 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 HYPE treasury strategy. For the quarter, we spent approximately $160 million on HYPE purchases. As a result, our cash and cash equivalents at March 31st is significantly lower than our balance was at December 31st. 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/dashboard. Once we file our 10-Q, 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 HYPE 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. With that, I'll turn it back to David for some closing remarks.

Thanks, Brett. As you can tell, we continue to be very excited about Hyperliquid, the ecosystem around it, and the role that we are playing in it. We hope that role expands over time. Today we are a DAT. We will continue to be a DAP for a long time, but we will continue to find more and more ways to expand our earnings, expand our revenue stream by participating in more and more ways in the ecosystem. With that, I would like to turn it over to any questions from the participants.

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 Bill Papanastasiou from Chardan. Please unmute your line and ask your question.

Good evening. Thanks for taking my questions. It seems like the narrative is shifting from Hyperliquid being more than just a perps exchange. I'm curious how conversations are evolving with institutional players following the launch of pre-IPO markets and HIP-4. Any color there would be greatly appreciated. Thanks.

Yeah, look, first of all, Bill, thanks for joining. I would say the people we speak with on the investor side, there's a very wide range when it comes to knowledge and understanding of Hyperliquid. There are some who are very deep in the ecosystem, who are very crypto native, understand this extremely well, and when we speak to them, they say, "You know, we get the whole HIP-3 thing. Let's talk about HIP-4, let's talk about pre-IPO," which I'm gonna talk more about in 1 second. There's also people we get on the phone with or get on video with who really have no idea what Hyperliquid is. They probably know what Bitcoin and Ethereum is, and we are really starting from the ground up with an education of what it is.

We really think a big part of our role here in the ecosystem is spending time with the sort of TradFi financial services and exchanges, equity investors, to have them appreciate that this is something they should be spending time on, and we're doing a lot of that. I think the answer is there's a wide range of outcomes and interest from people. I think that almost to a person, it's hard to find people that don't find what's gone on in HIP-3 to be interesting. You know, it, as we've said, this isn't now something that we hope might happen in the future. This is something happening real, having real effects on markets and world events, like the Iran conflict. That's exciting people.

HIP-4 is just so topical because of prediction markets, because of Kalshi and Polymarket are always doing something every single day that's newsworthy. The pre-IPO markets that TradeXYZ is launching, I personally can't be more excited about. I've talked about this in the past. I've tweeted about this. I still have scars from an IPO that happened like 15 years ago that I was an investor in where, I thought that the bankers didn't do a great job in representing us as a client. One thing that we really could have used was some price discovery before the actual pricing of that IPO.

I think that, having that price discovery with, in real markets, with real money changing hands leading up to an IPO will be very, very valuable and actually move the needle for venture capitalists and their ability to make assumptions around exits. The investments they can make because of that. I think this is not, this is not a footnote. This is a really interesting thing that might actually affect venture capital investment, jumpstart ingenuity, all around the world.

Sounds like there's a lot to be excited for. Then if I can fit one more in. Congratulations first on the news with Unit. David, maybe you can just help us frame how you see that relationship growing over time. Do you think that there are more opportunities to work with what is essentially what is the leading market player in the Hyperliquid ecosystem? How are you thinking about that?

Yeah, I think the answer is almost certainly yes. First of all, we are definitely proud to be partnering with Unit and Trade XYZ on this. Outside of the Hyperliquid team themselves, I think the Unit/Trade XYZ team is the most respected and most successful in the Hyperliquid ecosystem. They're also people I think that are careful as to who they do business with. They're not gonna attach their name and attach their brand to anybody. We are both thrilled and proud to be associated with them more formally right now. I think there's certainly things we can do more with them. I can't sit here and say what those are or promise what they're gonna be going forward.

When you put smart people in a room, and sometimes we join those smart people, good ideas often come out of it. The answer is, no nothing is cooking that we're about to announce tomorrow or the next day. Yes, I think that we would love to find opportunities to work with them in ways that are mutually accretive.

Appreciate all the color and congrats on all the success. Thank you.

Thank you.

Our next question will come from Matthew Galinko with Maxim Group.

Hello, Matt.

Hey, good afternoon, guys. Thanks for taking my questions. First off, congrats on the effective treasury operations. I was wondering, just given about a $100 million cash balance, what do you think is kind of the right level to hold versus turning that into, you know, staked HYPE? What kind of the lowest balance you'd be comfortable holding?

It's a great question. I feel like you might've been a fly on the wall at our board meeting yesterday because this was a hot topic that was discussed and debated. It's timely I get that question. I think. Let me give you some broad opinions here. One, we think that $25 million is sort of a bare minimum we would ever consider in home cash. We think we wanna have multiple years of operating expenses sitting in cash, so we will in no case ever have to issue equity in any sort of stressed environment to be able to keep the lights on. I think to start with $25 million is the absolute bare minimum. Beyond that, we have to think hard about other opportunities.

It's really a combination of other opportunities we may have to use that cash in the ecosystem. We're not gonna go out and buy a sports car maker or or an internet company. Other opportunities that, you know, in the ecosystem, that can make sense. Cash to put into buying additional HYPE if there's significant drawdown or some sort of dislocation. We think that, you know, the valuations are at levels that we truly can't help ourselves. It's really some number above 25. I think 100. Again, if you were in the board meeting yesterday, some people thought that was too high, some people thought that was too low, some people thought that it was just right. We're really thinking hard about that.

I will tell you that is an ongoing discussion we're having while we continue to pretty consistently be buying the token in the market as we've been doing. The answer is beyond 25. I don't have a magic number to focus on. I think that the other thing, of course, is this is not a static analysis. Every day, the value of our tokens change. When the value of our tokens go up, the percentage of cash as a percentage of our total capital goes down, and obviously the opposite happens vice versa. We're watching all those things while consistently buying tokens and think about where the right place to end up is. That, I don't mean to punt, but it's not like I have a secret number in my back pocket I'm not telling you.

It's something we think about all the time.

No, that's a great answer, and I appreciate the color. Maybe just as a follow-up to that, given another DAT that kinda talked this quarter about selling the digital asset if they trade below one on an MNAV basis to accrete their token. You know, again, the idea was selling Bitcoin and to buy back the com. Can you maybe relate to that, just given, you know, your discussions around treasury management? In a scenario where you're low one or meaningfully below one, does that math make sense to you to, you know, sell the token to buy back the common? You know, if you do draw down the cash balance kinda to a bare minimum level. Just kinda wanna know how you think about that environment. Thank you.

Yeah, look, I would say that we are corporate finance geeks before we are crypto zealots is the way I would describe us. Doesn't mean we're not spending lots of time and lot of brain cells thinking about crypto and being and thrilled to be in the middle of this. We're corporate finance geeks. What I mean by that is, when our token was trading Sorry, not our token, excuse me. When our stock was trading at a discount, a pretty meaningful discount mostly in the month of December, we did use cash to buy it back. We got some accretion there. That's something, certainly something we have done. In the future, to the extent I'll paint the picture that you started with.

If there's a time in the future where we are down to that minimum level of cash and our stock is trading at a serious discount, we would definitely consider selling tokens to do that. We don't have a religious zealotry saying we would never, ever sell a token under any circumstances. We don't wanna do that. We don't think that'll be good for us. We don't think that'd be great for this, for the ecosystem. We don't think that's good for a lot of reasons, and that's one of the reasons we like having excess cash beyond the $25 million. If you're asking me, you know, gun to your head, would you do that or would you know, jump out of a window first, the answer is absolutely we would do that.

It's a little different than Strategy, I think. MicroStrategy or Strategy, I think, talked about selling tokens because they need cash to make debt payments, I think. You, you're probably more of an expert on the latest going-ons there than I am. Obviously that's different from us. We don't have any debt. So, it's just different.

Great. Thank you. I'll jump back in the queue.

Thanks, Matt.

We currently have one question from Brian Vieten at Seabird that I will be reading out. Here's the question. "Has there been any update to the treasury strategy as far as the 1.1x by 0.9x MNAV bands and your calc of MNAV? I know there was an update to the MNAV calc recently based on your dividend. Curious if there's any others you'd call out that impacts that original framework?

I think I understand the question. The 0.9-1.1 band, we haven't changed that. We don't have an update to that. I will say, as we've said from the beginning, that is somewhat art, not science. It doesn't mean at 1.11 we are up selling shares like crazy, and at 0.8999 we're buying back our stock like crazy. That's really meant to give the public sort of the idea of how we think about it and how we focus on it when we start getting attention. I will tell you, though, the more things we're doing to generate additional revenues in the ecosystem and the more successful those things become, I would say both those numbers will be going up over time. I think that it's sort of an obvious statement, right?

If we have significant additional businesses that are generating significant revenues and earnings outside of just the token and the staking, that would imply we have, in a sort of a sum of the parts analysis, our company is worth more than just the tokens sitting on the balance sheet, and therefore we should be more stingy with selling our tokens and the multiples we would sell at. The answer is we have not changed that thought today, the 0.9-1.1, but that is far from written in stone, both going forward from a, you know, thinking about those numbers, but also day to day and when we issue stock.

Yeah, just to clarify there, I think you said-

Please clarify.

Tokens once, and you meant shares.

I-

That conversation was about shares.

It's all about shares. I'm sorry. I made that mistake too many times on this call. Yes. The tokens are always worth one time the value of the token. Any other questions?

We currently have no other hands raised. That concludes our question and answer portion of today's call, and I'll hand back the call to Hyperliquid Strategies for any written questions or closing remarks.

I don't think we have any other written questions that have come in. We absolutely appreciate everyone who joined us. We certainly appreciate you taking an interest in our company, and more importantly, taking an interest in the Hyperliquid and the ecosystem around it, and we look forward to continuing to have these calls going forward. More importantly, we look forward to continuing to have live you know, highly up-to-date information available on our website and through other sources so that we can disclose as much as possible to the community as quickly as we can. That is really a key tenet in how we think about things. We wanna disclose as much as we can, as frequently as we can, as quickly as we can.

Appreciate everyone doing this, and please reach out with any follow-up questions. We're always happy to talk.

Good morning, and welcome to Hyperliquid Strategies Second Fiscal Quarter Earnings Conference Call. My name is Robert Diamond, and I am Director of Corporate Affairs for Hyperliquid Strategies. Participating in today's call are David Schamis, Chief Executive Officer, and Brett Beldner, Chief Financial Officer. David will review the company's vision and strategy, as well as the current business environment and market positioning. This will be followed by Brett, who will review the company's financial performance. As a reminder, this conference is being recorded. We ask that you please hold all questions until the completion of the formal remarks, at which time you'll be given instructions for the question and answer session. 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 that you 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 Schamis. I'm gonna start on Page 5. Just to remind everybody, we are a digital asset treasury company, and our job is to hold the HYPE token. When we closed on December second, investors contributed both HYPE tokens to us and cash. Since then, we have used our cash to both buy back our stock, as well as to buy HYPE tokens in the market. We continue to be very impressed with the speed at which Hyperliquid is moving to continue to grow its existing crypto business, and maybe even more exciting, to bring real-world assets on chain. Two Fridays ago, when silver had a massive trading day, 2% of the world's trading volume happened on Hyperliquid, and that was after it only being available on the Hyperliquid platform for about three weeks. Incredibly impressive.

If you go to Page 6, just to remind everybody, HSI, Hyperliquid Strategies Inc., is currently the largest DAT for HYPE by a pretty wide margin. I have said before, many times that unlike Bitcoin, and other widely available tokens, HYPE is still not easily accessed, particularly in the United States, and our main job, at least for now, is to enable that access for investors on a major U.S. exchange. As we will continue to discuss, we try to be as efficient as possible with our capital, primarily focused on the NAV per share accretion that we can achieve with our activities. We will continue to explore opportunities to enhance our yield while taking as little additional risk as possible. HYPE is already a very volatile asset, and we are not looking to turn HSI into a VC fund.

On Page 7, people have seen this group before, but we're very proud of the world-class group we have put together to help advance the Hyperliquid, Hyperliquid ecosystem and to grow our NAV per share. The most valuable thing that we think we can do for the ecosystem is to help different players and people in the system access the traditional financial system. There aren't too many senior leaders in the traditional financial world that someone in our group can't get access to. Bob was the CEO of Barclays. I frequently point out that Barclays was the only major U.S. or U.K. bank to never take government money. Eric Rosengren was a career Fed guy who most recently served as the president of the Boston Fed and member of the Fed's Open Market Committee.

Larry Leibowitz was the President and COO of the New York Stock Exchange when it was merged into ICE. Tom King was the former head of the corporate investment bank in Barclays, and more importantly, a managing director at Salomon Brothers in the nineties, when both myself and Jeroen, our COO, were lowly analysts in the investment bank. And lastly, we have partnered with some of the top participants in the crypto market who give us TradFi guys some invaluable insights into the crypto world, and most notably, Paradigm is a co-sponsor of the deal with us here. If you go to Page 8, we are executing aggressively on our strategy here. A few things to point out, two analysts have started to cover HSI. Hopefully, they're on this call, and we expect more to come in the not-so-distant future.

We think that, as part of spreading the awareness of Hyperliquid, this is done both with things like being on TV, and being very public, but it's also one-on-ones with investors, going on podcasts, being at conferences, et cetera. I happen to be sitting in Hong Kong right now at a crypto conference. One of the more interesting things that have happened since we announced this deal last July, needless to say, we have talked to lots of people who find what we're doing interesting. We've spent some time with a very large, very well-known high-frequency trading firm, U.S.-based, and amazingly, they told us that they are not able to buy the HYPE token directly themselves, even though they are quite engaged in crypto trading, and that's because it is traded on a DEX-...

and their current compliance program wouldn't let them invest directly on a DEX. That, to me, proved just how much value we could be bringing right now by creating a DAT for Hyperliquid. If you go to Page 10, this is a bit of a, bit of a high level on the global financial system. Needless to say, I could drone on here for a long time, but I'm not going to. The basic concept is we have all heard more and more that crypto, excuse me, that real world assets are gonna be moving on-chain. But how exactly that's gonna happen has been an open question in a lot of places, and we think Hyperliquid is a big part of that.

The other thing I want to point out, over the last 10 years or so, there have been crypto maximalists who think the whole world is going on-chain, and we're all gonna be buying bread in the store with Bitcoin overnight. There have also been quite a bit of people from the financial services world in particular, who think it's all going to zero, and this is all just a, just a joke. For years, we have been sitting somewhere in the middle of those things, and we think the world is moving to being in the middle of those things. I think it is obvious that crypto is real, trillions of dollars of market cap, and will be here for a long time, if not forever, and innovations that come out of it will be very, very important.

On the other hand, I don't think we're all gonna be buying bread tomorrow with Bitcoin, at least not in the United States. If you go to Page 11. On Page 11, there are a couple of general observations I'd like to make. First, it is difficult to get consistent data, and when it comes to crypto, there is often no single source of truth. There's also a lack of standardized definitions that we have to cull through to figure out how we think about a lot of these things. There's a lot to cover, and new developments literally pop up every day in this world. 2025 saw solid performance of Hyperliquid as both a perp DEX as well as a blockchain. The perp DEX excelled in the first half and was, for a long time, on track to be the single largest fee-generating blockchain.

The blockchain setup proved efficient and saw huge volumes processed and attracted many new users rapidly. Some important innovations turned into real revenue generators very quickly. If we go to Page 12, some numbers around this. From a very small base in the fourth quarter of 2024, Hyperliquid saw massive revenue growth through 2025, and even though the fourth quarter was less than the third quarter, so far in the first quarter of 2026, we're seeing a very strong rebound. January had $79 million of revenue, which was approximately double December, and on that rate, we'd be at about $240 million of revenue for the first quarter. Meanwhile, Hyperliquid is the number one DEX in perp volume, the number one perp open interest, with more than 150,000 active weekly addresses.

If you go to page 13, this is a very important page, and it shows a number of things that are happening in the Hyperliquid system. Over the last 12 months, they've rolled out all these things, and I'm gonna briefly run through them. First one, Builder Codes. This is allowing other people, like Phantom, to use their distribution to tap into the perp liquidity on Hyperliquid, thus adding more volume and more fees to the platform. The second one, HIP-3. This allows others to create their own perp exchange front ends for whatever real-world assets they see opportunities in, without the time and the cost of building the back-end nuts and bolts of a central limit order book. The third is HLP.

This allows users to share collateral across positions, which is so important to market makers in the platform, ultimately bringing more liquidity to the platform. And fourth, HIP-4, extending the idea of HIP-3 in allowing others to create their own front ends in both options and prediction markets. I think for so many companies we're all used to in the Tradfi world, if they achieved one of these things in a 12-month period, they would be very proud of themselves. Hyperliquid is gonna do all four of these things. That is extremely, extremely impressive. One thing I always talk about as a way to visualize how important these, these things are, I'll talk about HIP-4 for a second. And imagine being a startup company looking to raise money to compete with Polymarket.

You're sitting in a room with a venture capitalist, and they ask you how long it'll take and how much money it will cost for you to build a back-end processing system to compete with Polymarket. The answer before HIP-4 would have been: It'll take a lot of money and a lot of time. That would be a serious deterrent to someone putting money into that new venture capital startup. Instead, now, that company can say, "We're gonna use the infrastructure provided by HIP-4, and we're gonna entirely focus on the front end," meaning the marketing, the finding customers, and offering interesting things, and creating liquidity. The entire back end can be handled by the HIP, by HIP-4, which is extremely impressive. Onto Page 14. These are a couple nice headlines. There's been many, many more, obviously.

I will say last spring, when we started seriously investigating Hyperliquid, very few people in the traditional finance industry had any idea what Hyperliquid was. Today, even with all the progress that it has made, it is still relatively unknown in the circles that we normally run in.... A big part of our job is to continue to bring awareness to this amazing blockchain and the technology associated with it to the mainstream financial world. The more people we talk to, the more time we spend on it, the more impressed people are, and the more amazed that this is being created and growing right under their nose. Lastly, let's go to Page 15.

This graph shows perfectly how while so many people are talking about all the useful things that are being built on chain, the HYPE token has true utility in that 99% of the revenues of the blockchain are being used to repurchase and burn the tokens. Versus everything else in the crypto world today, there is literally no comparison between all of them combined and what Hyperliquid has done in this regard. That being said, let's switch now. Let's go to Page 17. This is a little bit how we think about our treasury strategy. This is meant to be a framework. This is an art, not a science.

The main point here, the main value we can add is that over time, we want to be able to buy the HYPE tokens and possibly buy our own shares to take advantage of varying market conditions to ultimately create NAV per share accretion for our shareholders. That is our number one goal. To state the obvious, this chart, I think, speaks for itself, but when our MNAV is high, we will be selling shares into the market, thus accreting our NAV per share. When our MNAV is low, we'll be buying back our shares from the market, thus accreting our NAV per share. When we believe that HYPE is trading below its fundamental value, we will be buying the HYPE tokens, and when we believe that HYPE is trading above its fundamental value, we will consider selling.

Just for the avoidance of doubt, right now, where we have been, and pretty much where we have been since close, we believe that HYPE is well below its real fundamental intrinsic value, and we are, needless to say, very bullish. A simple thing I would tell you is when we think of things like PE, price to earnings, HYPE trades well below the S&P 500 and even more further below other comparables in the crypto world. It's not even close, actually. You go to Page 18. This is a bit of an update of what we have done so far. These numbers are as of last week. We will be going forward, posting on a dashboard, all the things we do with a one-week lag. So it's perfectly appropriate today that we're showing these numbers with about a one-week lag.

But since we closed, we have deployed about $140 million. Of that $140 million, approximately $10 million have been in buying back our own shares. We did that at an average price of $3.42. We've repurchased over 3 million shares. That brings our adjusted fully diluted share count down to about 150 million. We have bought about $130 million in tokens. Our average price is a little under $26 per token. We have purchased about 5 million tokens, and that brings our amount of HYPE held to about 17.5 million HYPE tokens. We have about $125 million of capital remaining.

That is both for a treasury deployment, also buying back, stock if the opportunity came about. That excludes some capital we are reserving for operating the business. Obviously, we're a public company, and there are costs associated with that. We also have an ELOC in place to do additional share issuances, as we talked about earlier, when we see the opportunity. With that, I'm gonna move to Page 20, and I'm gonna pass on to Brett to talk in more detail about some of the financial metrics.

Thank you, David, and good morning, everyone. Now I'd like to discuss our financial performance for the first six months of our fiscal 2026 reporting year. Page 20 provides a summary of our performance. As you will see, HSI's results are driven by two key factors: the change in the value of the HYPE token between signing and the end of the reporting period, and the acquisition of Sonnet. Going back, the terms of the overall transaction provided that we received commitments from investors in both cash and HYPE tokens of approximately $888 million. The value of the HYPE contributions was fixed at signing at around $46.37 a token. Upon closing the acquisition of Sonnet in December, the price of the tokens had declined to around $32.86 a token.

The difference between the two resulted in an accounting loss on the HYPE commitment of around $169 million. The acquisition of Sonnet was treated for accounting purposes as an asset acquisition. The excess purchase price paid for Sonnet, including associated transaction costs over the fair value of both the tangible and intangible net assets acquired, represented in-process research and development costs of $35.6 million. These costs were written off at closing, as they were not deemed to have any future use....The remainder of our pre-tax operating performance primarily related to the period after the transaction closed through December 31. We recognized interest income from our cash and cash equivalents and staking income from our HYPE tokens for a total of approximately $1.4 million.

We record our HYPE tokens at fair value, so any changes in the value of our HYPE holdings are reflected through income. Due to the decline in the HYPE token price post-closing, an unrealized loss of approximately $93 million was generated for the time between the transaction closing and December thirty-first. SG&A and R&D expenses represent operating costs for the period, which include establishing the $1 billion equity line, getting the company up and running, as well as normal operating costs of both the HYPE treasury business as well as the Sonnet legacy business. We also note that there was a tax impact of the transaction in our results. The transaction was structured in a manner that allowed the company to receive contributed HYPE tokens at an investor's tax basis.

The difference between our tax basis and the fair value of the tokens on December 31st resulted in an $18 million deferred tax liability, with a corresponding deferred tax expense reflected in our income statement. The net result is a $318 million loss for the six months ending December 31, 2025. Moving on to Page 21 and our balance sheet, I'll spend a minute or two focusing on the material items. There are two material assets on our balance sheet at the end of the quarter: cash and cash equivalents and our HYPE tokens. Upon closing, we received about $300 million of cash from investors and approximately $10 million from Sonnet.

This cash has been used during the period to purchase $9 million of HYPE tokens, buy back approximately $10 million of common stock, pay closing costs, and pay operating expenses. As of December 31, we had approximately $282 million of cash and cash equivalents remaining, a portion of which, as David discussed, we will maintain to ensure we have sufficient funds for our operations over the foreseeable future, and the remainder is eligible to be used for our treasury strategy. The $327 million HYPE digital assets balance represents the fair value of the approximately 12.9 million HYPE tokens that we owned as of December 31. This consists of the HYPE tokens that we received as contributions from our investors, HYPE rewards earned from staking, and any HYPE purchased as part of our treasury strategy.

On the liability side, we have no debt obligations other than short-term liabilities that resulted from either the transaction or in the normal course of business. The deferred tax liability represents our current estimate of the tax obligation that would exist if we were to sell all of our HYPE assets based on the price of the HYPE token on December 31. Please note, we currently have no intent to sell our HYPE, but are required to recognize this under GAAP. Our stockholders' equity represents the value of all the shares and warrants issued in the transaction, less the operating losses from our financial performance and deducting share repurchases.

So overall, while the price performance of the HYPE token was not as we would have liked during the reporting period, the size of our cash balance on hand, combined with the price of HYPE in January, left us in a very strong position to execute our treasury strategy. Moving on from our financial results to Page 22, we spent a lot of time since closing, speaking to investors, analysts, and looking at other digital asset treasury companies. The one key message that we received is that other than for SEC reporting, there is a lack of transparency in the market about companies' digital asset holdings, cash positions, net asset values, et cetera.

We debated internally amongst the senior management team, as well as the board, as to how best provide useful information to the public, but yet not prejudice our ability to be in the market for both HYPE and our shares. The result of those discussions is illustrated on Page 21. This slide represents a dashboard that we, we will be putting up on our website that contains an illustration of several key factors that we, as senior management, use to implement our treasury strategy, and therefore wanted to share that with the public. Walking through an example, we consider the following: the fair value of our HYPE portfolio, the current market capitalization of PER, our company stock, including any common stock equivalents.

Common stock equivalents currently include the number of shares that our preferred stock is convertible into and will include any dilutive securities that may exist in the future. These items are then incorporated into the analysis, which we will show in two ways. On the left side, we take our stockholders' equity or net asset value from the last reporting period and roll it forward through the following: We subtract cash spent from operations, add the amount of cash we've received from issuing equity, and subtract the amount of cash that we've deployed in our treasury strategy. We then remove the balances of our HYPE portfolio and current deferred tax liability estimate from the last reporting period and update them based on the current HYPE token price to get an adjusted net asset value number.

On the right side, we provide our current cash balance and our HYPE portfolio at fair value based on the current token price, and subtract out our estimated deferred tax liability and adjust for other movements to get to the same adjusted net asset value. The adjusted net asset value is then compared to the current share price to get a trading multiple of adjusted NAV, as illustrated on the slide here and will be included on the website. Some of these factors, such as the HYPE price and our stock price, will update real time, and other updates, such as the execution of our treasury strategy, will be updated on a weekly basis, one week in arrears. We believe that this information is important for people to understand our business and our performance more often than once a quarter, when we provide our required SEC reporting.

We hope you will as well. We expect the website will be up and running with this dashboard today. Now I'll turn it back over to David to wrap up the presentation.

Thanks, Brett. I'll make two last sets of comments. The first, just to beat a dead horse on this Page 22, we thought it was important to show this both ways, the left and the right. There were some people who wanted just a simple analysis on the right: How much cash do we have? How much tokens do we, do we own? Deferred tax liability that they can add back, and what does that come out to? And there are some people who are gonna be much more careful and want to foot back to our financial statements, and that's what we do on the left, and obviously, they both come to the same number, which is the key thing. We are not gonna take everybody through all the pages in the appendix.

You can go through those on your own, but I do want to point out one page that we think is very important. Page 31, we believe to be an important page. This is where we equate the tokens outstanding on HYPE to what we consider to be how an analyst would look at a regular way public company. It's amazing how much time we spend talking to people about this, and it is a topic that is not normally something spent a lot of time when dealing with, as I say, regular way public companies. If you look at the column on the left, we start with 1 billion tokens. This is the initial supply, and this is the most that could ever be issued in the future.

To start with, we deduct things that have been reserved that to generally help develop the platform and participation in trading and staking to drive the ecosystem. This includes future emissions, Hyper Foundation, and community grants. These may be issued in the future, and they'll only be issued in the future if they're associated with specific growth initiatives that believe to add to the value of the total ecosystem, but they have not been issued yet. The second bucket would be tokens that have been permanently burned, either through buybacks from the assistant fund or fees on HyperCore and HyperEVM. Those are gone forever. What's left, the outstanding token supply, which we have up here, is what we would equate to a regular way public company when thinking about shares outstanding. Now, of that, about half is to the core contributors. These are the founders of Hyperliquid.

Some of these are unlocked, meaning they're vested and allowed to be sold and traded. Some are not yet unlocked, but for our purposes, we assume it is all available, because over time, they will unlock. We think the likelihood of any of these unvested, not vesting are pretty low. And then the last is the circulating supply. That's the amount that you can buy and sell today. And when you add those two things together, that is what we consider to be the outstanding token supply, which equates to about a $15 billion market cap if we were comparing this to what I'd call a regular public company. This is a topic we'll be talking about quite a bit. It'll come up a lot.

I am curious and eager to hear comments from others about how they feel about token supply and if they think we're thinking about this the wrong way. With that, that concludes our formal presentation, and we would like to go to any questions and answers from listeners.

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 comes from James McIlree with Chardan. Please unmute your line and ask your question.

... Thank you. Good morning. In slide eight-

Hello.

Hello, can you hear me?

Yep, we hear you fine.

Great, thanks. In slide eight, you have a line that says you're exploring validator opportunities. Can you discuss what's going into that, potential timing, cost, and the thought process as to why you would or wouldn't do it?

Yeah. I think that's, you know, one of our goals, certainly long term, but probably more like medium term, is to be more and more engaged in the Hyperliquid ecosystem. I think being a validator would be one way we could do that. The other thing is that it is important going forward that we are have an operating business beyond just holding the tokens for all the various reasons we all know, being a validator checks that box. So we are, we are working through that. I don't have a particular timeline. Like, I, I don't wanna say it'll be on a particular date, 'cause we, you know, this is something you don't want to roll out till you're absolutely perfect. There's not a lot of room for error in being a validator, but we think this will be something in the... I would call it the medium term. I think the cost of getting this up and running will not be significant. It'll be something. It's not, nothing in this world is free. But it won't be, it won't move the needle any meaningful way. We're not gonna, lik e, spend a bunch of money to buy something and put a bunch of goodwill on the balance sheet. That's not even remotely possible.

That's great. Thank you. That's helpful. And then, secondly, the thought process on buying the stock or buying the token, I know what you're saying, but can you put a little bit more specificity around that? That is, and I'm making up numbers now, so you need MNAV to be greater than 1.1 before you start issuing stock, or you need MNAV less than, again, making up numbers, 0.9, in order to buy the stock. Can you put maybe a little bit of boundaries on where you would be buying tokens versus buying stock relative to MNAV?

Yeah, look, as I said before, we consider this an art, not a science. Like, we're not gonna sit here and say, at, you know, 0.91, we won't be buying back our stock, but at 0.89, we will be. And the other thing is that it depends on how long you're at these various levels. If you sit at 0.89, just to use your example, for five minutes, we're not necessarily gonna be pouncing into the market. If we're there for five days or five weeks, there's more likelihood we would. So again, you know, I would say on one hand, we're specifically not gonna put, you know, those kind of specific numbers out there.

On the other hand, I would have to say the range you use, the above 1.1 and below 0.9, is certainly where we get focused on both ends of that, if that makes sense to you. Again, it doesn't mean we're gonna hit the button at 1.11, but that's where we really start paying attention and focusing ourselves. At 0.01 or at 0.99, you know, we're not gonna sit there and be super focused on either one of those.

Yeah, I get it. That makes sense.

Hopefully, that's helpful. I'm not trying to be evasive. I'm actually just telling you the actual truth. This is how we go about it. You know, this is not meant to be an algorithm. It's meant to be a thought process.

That makes, that makes eminent sense. Thank you. I appreciate that. And then lastly, so is that an investment committee decision, or is that a CEO decision, or how does that, how does that decision get made to say, "Okay, the MNAV is at levels we find interesting, so we're going to be buying stock or buying, or buying the token?

Yeah. I would say it's two things. It's a constant discussion and debate among the management team. It is frequent updates to the board around our thinking around this. The board is not involved in every purchase. That wouldn't be feasible, but I don't think any purchase we do would surprise any board member when we do it. But ultimately, the decision is with me, the CEO.

Understood. Thank you,

Yeah.

Yeah, I'll cede the floor and let others ask questions.

Perfect. Thanks for joining, and thanks for breaking the ice on the questions.

Our next question comes from Gareth Gacetta with Cantor. Please unmute your line and ask your question.

Hi, guys. Can you hear me all right?

Yeah, we hear you great, Gareth. How are you?

Great, good. Thanks for taking the question. I just wanted to kind of double dive on the staking for the quarter. Could you maybe provide an update on what percentage of your HYPE holdings are staked with validators? And I don't know if you've given kind of a framework on how to think about that going forward, if you kind of expect to maintain a certain percent staked versus liquid.

Yeah. Brett, you can correct me if I'm wrong here, but 100% is staked. At the moment, 100% is staked with Anchorage, our custody provider. And I think we plan on having a 100% staked all the time, unless there's, you know... Obviously, circumstances might change sometimes, but the steady state we expect is to be a 100%.

Got it. Thank you.

That is, that is correct as to where we are at the moment. Of course, as David said earlier, you know, we do evaluate other opportunities that may come in to use the HYPE tokens, but as David also explained, we are not planning on being a hedge fund. So in order to do something that generates a return that's acceptable with risk, it would have to meet our, you know, standards, and as a result, currently, the plan is to continue to stake until something that we're comfortable that is better comes along.

Gotcha. Just a quick follow-up to, I know it's kind of early, but the ecosystem just announced HIP-4 and kind of prediction markets. So I'm wondering if you could just kind of give, like, your overall thoughts, high level, and, and how you think you might end up playing in that space.

Yeah, look, we're excited about HIP-4. There was talk about it, some speculation over the last months. So, I don't think... We weren't surprised, but we're excited about it, and it just shows the advancements here and the idea that we're gonna be, it's both, it's both options and prediction markets. Prediction markets have certainly garnered a lot of attention in the world lately. But on the other hand, you know, the amount of options that are traded in this world and the amount of revenue generated from options being traded in this world so far, dwarf what's going on in prediction markets. It's not even close, but both of them are really great to see. It's not out yet.

I think that the Hyperliquid team is still in the building mode there, but I'm glad they announced it, and I'm glad that the world is getting prepared for it. From our point of view, you know, I'm not sure we have any particular plan to do anything particularly interesting day one. We're evaluating, as we said before, evaluating things we potentially do with our token around HIP-3. Haven't done anything yet. I always tell people that when we think about these things, when we think about committing our capital to anything other than staking, whether sort of the Twitter world likes it or not, we move at sort of TradFi speeds. We're not moving at crypto speeds, you know, and that's sort of the world we live in and how we think about it.

But we're careful with our capital, but obviously want to generate the best yields we can.

Totally. Maybe if I could sneak one last one in.

Sure.

I just wanted to get your thoughts on the Clarity Act passage. I know it's kind of back and forth, and it seems like we're butting heads a little bit, but some outlooks seem to be like we're gaining progress. So just wanted to kinda get your take and then what types of catalysts that might bring going forward.

Yeah, look, I don't think we have any particular knowledge that's not well known to everyone around timing or likelihood of passage. I had heard in the sort of late fall, early winter, that there were some people who were quite well-placed that were absolutely certain the president would be signing at the end of 2025. That didn't happen, obviously. I think prognosticators now are thinking it'll be done in the spring, which would be great. Again, it's really hard to know whether it's gonna happen or not. I'm sure Polymarket can tell us the odds of it happening, and that's probably as good as any guess we're gonna have. As far as what it means for Hyperliquid, I still think it's somewhat unclear. I don't think perps are gonna be explicitly allowed in the Clarity Act.

It's possible, but I don't expect that. I don't necessarily expect a DEX to be explicitly allowed in the U.S. in the Clarity Act. On the other hand, we do think there may be paths in the act for regulatory action over time to pave the way for these things. I would say that's sort of our hope. But, you know, beyond that, I don't think we know anything you guys don't know, and we're hoping it gets done. I think as a voter and as a crypto market participant, I'm hoping come November, this isn't, like, some major partisan issue in the November elections, that this is behind us.

That would be bad, and I think that actually I think both parties are hoping that that's true, that it is not a major partisan issue.

Okay, great. Thanks for taking all the questions, and congrats on the first earnings call.

Yep. Thanks for, thanks for joining, and thanks for the good questions.

That concludes the question and answers portion of today's call. I'll now hand the call back to Hyperliquid Strategies team for any written questions and closing remarks.

Look, we're happy everyone joined. Appreciative for the questions, appreciative for everyone focusing on this, and we look forward to continued success. Just to one last point, as we said before, we expect by the end of the day today, our dashboard to be on the website, and I think that'll be a nice look into how we see the NAV on a sort of day-to-day, minute-by-minute basis. Thanks, everyone, and look forward to doing this again.

Thank you.