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Good morning, and welcome to Hyperliquid Strategies earnings conference call for fiscal year ending June 30, 2026. I am 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 is worth repeating, Hyperliquid Strategies is the largest publicly traded digital asset treasury company for the HYPE token. We are listed on Nasdaq. The HYPE token obviously is the native Hyperliquid token on the blockchain. We have a strong balance sheet. As of August 18, 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, and it is really that simple. We, as a company, are a DATT, but that means that we are not an ETF.

We have the ability to participate in the ecosystem in ways that we can as an operating company rather than an investment vehicle. The first thing we have 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. We are a top 10 DATT. I think as of the writing of this document, we are number six DATT in the world. We are obviously the largest I should not say obviously. We are the largest DATT vehicle for any digital asset other than Bitcoin and Ethereum. I will 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. Hyperliquid is extremely well-positioned, and one of the most successful blockchain use cases out there. Perp stablecoins, real-world assets, prediction markets. We are going to go into that as we go through this discussion. Unlike a lot of other blockchains, Hyperliquid generates real revenue. That real revenue turns into buybacks of the token, so effectively, that revenue generation is instantly or almost instantly returned to the token holders. From a valuation point of view, it is actually quite easy to understand how that works, and quite comparable to a lot of other things that people in this world value when it comes to businesses.

*HYPE is now a top 10 token, number sixth, 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. In a lot of ways today, it is hard to say Hyperliquid without the word perp, and it is hard to say perp without the word Hyperliquid. It has 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 perps to the forefront of the minds and thoughts of the investing world. The stablecoin world, which we all know, there is $305 billion of stablecoin market cap out there.

Hyperliquid has made a major move in stablecoin revenue, as we will talk about. RWAs, I say this all the time, but it is 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 has been a lot of theorizing and pontificating about it. There has not been a lot of actual action. That is not the case in the Hyperliquid world. Since last November, there has been a tremendous amount of actual real-world assets traded in perp form on Hyperliquid. Prediction markets, as many people know, are a large and emerging opportunity in the world that has been dominated really by two players so far. Hyperliquid has launched and will soon be launching their permissionless platform for prediction markets.

It is called Outcome Markets in the Hyperliquid world, that we think will make a major impact versus the other two incumbents, mostly because of costs and trading experience. Go to the next page, please. We will dive a little deeper into each one of these things. Perps, as we said, Hyperliquid continues to dominate the decentralized perpetual futures trading. It really has been the core of what Hyperliquid was built on from the beginning. I think when we started on this venture over a year ago, I was doing a lot of explaining to people about what a perp is. I still do some explaining to people about what a perp is, but today, the knowledge base of the general investing public is so much higher on perps. People understand it. People understand why it is valuable.

Rather than reading through every line on this page, I am going to focus on one, which is no fragmentation. I think that is an incredibly important part of what perps can bring to the levered investing world. For many, many years, the best way to invest in, let us just say, equities, 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, there are many, many, many different CUSIPs of call options.

You have multiple strike prices. You have multiple expiration dates. You then have puts and calls. For something like Nvidia, to use that as an example, there could be hundreds or thousands of different CUSIPs for one particular ticker. The problem is the entire world of people choosing to invest in Nvidia in a levered fashion with call options, all of that liquidity, all of that open interest is spread over every one of those CUSIPs. Even for the super highly liquid names, you have that liquidity spread over many, many different CUSIPs. What that does is it widens bid-ask spreads. There's a reason that many of the venues out there are paid for customer flow.

They're paid for customer flow, not because people like showing big numbers, because the bid-ask spreads are wide. And with wide bid-ask spreads, market makers can make a lot of money. On the perp side, for every one ticker, there is one perp. There's an Nvidia ticker, obviously, in 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. 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 wide spreads 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. Circle's 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 basically directly falls to the bottom line and is used to increase the buybacks of the HYPE token. I actually think that either officially went into place either yesterday or today or sometime around now. So that is not just announced. I believe that is in place now, and it is quite exciting. 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, 9. 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. I talk about this a lot, but when the Iran war began in February, late on a Friday, New York time, I believe the only place that oil traded for about 48 hours following that was on Hyperliquid. Amazingly, here we are in 2026, one of the most important, one of the most liquid, no pun intended, markets in the world is oil. A major geopolitical event happens late on a Friday, and this trading venue that had only offered oil for a small number of weeks leading up to that day was the only place that any real volume was traded for a full 48 hours. It is quite amazing, actually. Go to the next page 10. This is one of my favorite charts.

This is actually a conglomeration of a number of charts that I put on Twitter over the last number of months. Hyperliquid has become a place not only where existing real-world assets like Tesla or Nvidia have been trading, but pre-IPO listings have come about on Hyperliquid, where we saw some real volume leading into the IPO. I am not going to deconstruct this whole chart because it is 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. The four dots in the middle are where these four IPOs were priced.

I would point out that the price on Hyperliquid leading into the IPO was, A, an excellent predictor of where these stocks would trade post-IPO, and also, with all due respect, did a much better job of predicting where these things will trade than the investment banks that priced these IPOs at those four dots right there. This is a little bit of a soapbox that I have been on. I have been on this soapbox many years before I even knew what Hyperliquid was, many years before Hyperliquid was invented or founded. I think the IPO discount that gets charged to companies when they go IPO has been very high. It has been too high for too many years. There is a real-world impact on that high IPO discount.

Every time a venture capitalist invests in a new company, on the back end of that model, they assume an IPO price, they assume realization for their investment. That IPO discount has an actual effect on capital they are willing to allocate, 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. Again, we love this chart. We love this page, and I think it is actually worth staring at for a few minutes, even after this call. Let us 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 HIP 3 allows others to build their own markets, their own perp markets on Hyperliquid. That will be the same case for Outcome Markets. I do not think anyone thought that 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 whether congressional salaries will be increased or the other hundreds of different things that people take positions on Polymarket and on Kalshi.

The idea is for third-party builders, third-party deployers who have an expertise, 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 us 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 have seen it come down since the third quarter of 2025, but it is worth talking about that. There is no doubt since then, up until quite frankly this week, we have seen a bit of a crypto winter, and crypto has been in a bit of a bear market when it comes to trading volumes in general. Obviously, Bitcoin is down quite a bit since its peaks in October of last year. What has happened on Hyperliquid is what has replaced the volumes of crypto has been a lot of Real-World Asset trading. So Real-World Asset trading right now is in something known as growth mode, where the fee levels for the Real-World Assets are running at about a 90% discount to where the crypto fee levels are. It is expected to stay there for a while.

We are not expecting growth mode to end anytime soon. So what has happened is lower fee volume has replaced higher fee volume over the last number of quarters. We expect over time two things to happen. One, crypto volumes to return, and this week and last week, late last week, has been a good example of that. That is already happening. And we obviously expect Real-World Asset volumes to continue to grow in a big way and to see these numbers moving in the right direction. Go to page 13. This is, 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 daily on a programmatic basis. I talk about all the time how if you were to compare this to a public company, a public company might generate earnings one quarter. They have a board meeting sometime after the end of the quarter. The board sits around in a fancy hotel or somewhere and debates whether they should use those earnings to buy back stock, or to pay a dividend, or to buy the CEO a new airplane, or whatever. Here, there is none of that discussion or debate. It literally happens every day. It is programmatic, it is live, and it is 99% being used to repurchase the token. It is really one of my favorite features of the whole Hyperliquid system. If you go to page 14, we are constantly thinking about the HYPE token versus other cryptos out there.

One of our theses when we got into this over a year ago, one of the things we have talked about a lot, both before and after close, is we expect the correlation between Hyperliquid and the large incumbent cryptos to go down over time. If you look at the chart on the left, this is the correlation of HYPE, ETH, and Solana to Bitcoin. You can see HYPE has been, and almost at every point in this chart, is much lower correlation than the other two. That is what we have expected. That is what we continue to see happening. The HYPE token is trading much more based on the value creation from the Hyperliquid ecosystem, and much less as just a pack of crypto that is highly correlated to Bitcoin. On the right, we show the chart of the Hyperliquid token value relative to Bitcoin, ETH, and so.

It is 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. A lot of that volume, a fair amount of that volume was on Hyperliquid. In a lot of ways, that was the world's first view of what this Hyperliquid thing was and what was going on in the real-world assets side of Hyperliquid. You saw a breakout moment there. Oil, we talked about already. You saw a breakout moment there. Then when the pre-IPOs started trading in a major way on Hyperliquid, we saw another breakout there.

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 is 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" of Hyperliquid is. We add a significant amount of the currently locked tokens that are owned by the founding group. We do not think, we are fairly certain over time those tokens will unlock.

We think the right way to think about this, both from a circulating supply point of view, but also from a market cap and evaluation point of view, would be to add those back. That gets to a materially higher number, although interestingly, it would only move Hyperliquid from number 7 to number 6 on this chart. If you flip to page 17, we now get into some of the fiscal year 2026 highlights. To refresh everyone's memory, our fiscal year is June 30th, just to keep everybody on their toes. We closed our transaction on December 2, 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 NAV 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 at 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. 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 the token price would go down a lot between now and the end of the next quarter. The NAV has been quite volatile over the period.

I often say that I was expecting the underlying token to be quite volatile, and it has been. But I was not expecting the NAV to be as volatile as it has been. It's been as high as at or around 1.3x. It's been as low as at around 0.75x. That, while on one hand has caused me materially more gray hairs than when I started in this, it is also something we should not be upset about, we should be quite happy about as a DAT, because when that multiple is high, we're able to issue stock 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 would actually 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 GAAP 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.

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. Generally speaking, the direction of the line on this chart feels very good to us. The chart on the right shows how our stock has performed relative to the other large DATs out there. On one hand, it's nice to see this. On the other hand, I remind our team and our board all the time that we shouldn't break our arm patting ourselves on the back on this one. I think that this is almost, maybe not 100%, but mostly close to entirely, because of the underlying token performance.

Needless to say, we made a good choice with choosing the HYPE token going in, but most of this outperformance has been the HYPE token's outperformance. But we hope to add a little bit to it, by our good work and our hard work around here. Page 20. I've alluded to this earlier, but, because of the growth we've had, both in the underlying stock price performance and the equity we've issued, the net equity we've issued since closing, we are now the sixth-largest DAT in the world. We are by far the biggest non-ETH and Bitcoin DAT. 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 will be giving Michael Saylor a run for his money on the total value of our treasury. 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, to 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 and 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 holdings grew. 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 treasury strategy business. In addition, for the year, we recognized $35.6 million of IPR&D write-off expense related to the business combination 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 *mNAV.

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 NAV 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. In the eight or so months since we have closed our deal and have been public, as I said before, we've seen tremendous volatility, both in the underlying token and in our mNAV. 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, and we've also had people calling us idiots, thinking we're doing a terrible job doing what we're doing. I would put forward that we are neither geniuses nor idiots. I think that what we've done from the beginning, what we've set out to do and what we try to continue to do is to run this in a very disciplined fashion.

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. 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 DAT 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 *NAV 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 Gacetta 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 am 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? Ultimately, if the exchange has to KYC to 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. 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.

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. As I said, we're eager to be as helpful as we can in any way we can, for obvious reasons. 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 is very helpful. Then maybe a more technical one on AQAv2. I am wondering if the fact that all HIP 3 and HIP-4 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 HIP 3 and HIP-4 markets are launched, would we assume that the stablecoin supply should grow with those new markets as well?

Yeah, look, I think that is a reasonable assumption, right? The more things that are traded on Hyperliquid, the more different markets, the more open interest, generally speaking, the higher the USDC reserve level is going to be. So I think that is a perfectly reasonable assumption. You can probably go back historically and look at the different levels at Hyperliquid and where those USDC levels were and extrapolate some assumptions going forward.

The one benefit, though, of Hyperliquid as well is you are allowed to cross-collateralize positions. So it may not necessarily be a one for one, but it certainly should increase the overall buy-ins.

Okay, great. Really helpful. Then maybe one last one. I know we have had these two catalysts here with the U.S. announcement or potential announcement and then also AQAv2, but do you think that these two opportunities are being priced into the token even after the recent gains over the past two weeks?

Look, it's really hard to know, obviously. After President Trump's announcement at the press conference, obviously, the token jumped up quite a bit. Clearly, the market noticed. It's not like the market missed that. But look, we're obviously very bullish long term. We generally think the token is great value long term, and we think it's going to be worth a lot more in the future than today. It's really hard to sit here and break out the components of value and what's contributed what to get to the $82.14 that it's trading at right now. Look, it's an awfully good question. And I think generally the market's taking 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 McIlree with Chardan. 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. 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.

Yeah. When it comes to investments in the ecosystem, we've really only done one thing so far, and that's become a validator on the Hyperliquid ecosystem. I think we've talked about that in the past. It generates revenue. It doesn't generate a ton of revenue, so I don't want to overplay what that means for our shareholders, but it's something we're happy to be doing. We've looked at a lot of things. We're looking at a lot of different things. But I have to say, we have a pretty high bar here. To do something that is complicated, that drains a lot of time and energy for management, that it will be difficult to digest potentially for the investment community, and that might not generate a whole lot of value or has a lot of risk attached to it is not something we're particularly excited about, right?

Our core business is in the DAT treasury business. 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. For the last 25 years, I've been in the investing business where I say no to 95+% 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. Brett?

Yep. On part two of your question, the answer to that is yes. We are at 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 whatever costs relate to that. But regarding steady state of operating, yes, we should be at a $4 million for the quarter seems reasonable. We continue to focus on costs, and we'll continue to do so.

To beat a dead horse here, I do not mean to beat a dead horse, but the things we are looking to put our money to beyond just our DAT 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, well, most likely, are things we are 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, does not excite us that much. It is just not worth it.

It is 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?

I'm sure we can find evidence of this. I don't have it at the tip of my tongue, but we think it is already having an impact and will continue to. When it comes to the perp world, such an important part 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 efficiently they can 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. I think it's already having an impact and will continue to, and I think that that's sort of one important example.

But there are others as well about how good of a system the team in Singapore has built and how quick they are to make improvements to it over time. When you think about what they've done in a short period of time 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 sync. 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 and 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 color. 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. 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 repeat and also to go into more detail as time goes on as we think harder about this stuff. First of all, our primary thing we look at is mNAV. It's the straight NAV, not with adding back the DTL. On the other hand, I would say NAV with adding back the DTL is very much a secondary thing we look at. 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 1 times mNAV with the DTL add back. 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. 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. Look, 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. 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 Siebert. Please unmute your line and ask your question. Brian, you are unmuted. Please ask your question.

Might have lost Brian.

Brian, your microphone is currently muted. Please unmute and ask your question.

Brian, if we miss you today, feel free to reach out. We are happy to do this privately. Still happy to wait a few more seconds. Looks like we have missed Brian. Might be missing in action.

Yes, no problem.

As I said, we are around. Any other questions?

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

I do not think I have anything more to say than we have said already. I certainly appreciate everyone joining these calls. We report so much of our material information on a weekly basis. It is a little funny to sit here on August 27 and talk about data as of June 30, when in fact, we have had many weekly updates since June 30. I especially appreciate everyone listening to this, and hopefully, you found it interesting. As we have said many times, a big part of our job is interacting directly with shareholders. I encourage everyone to reach out if they have stuff they want to talk about privately, anytime. Thank you all for joining.

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.