Hyperliquid Strategies’ first earnings call highlighted aggressive HYPE accumulation, a strong treasury position, and a valuation-driven capital allocation strategy across both HYPE and PURR. Management emphasized upcoming catalysts such as BLP and HIP-4, while positioning PURR as both an access vehicle for U.S. investors and a growing strategic participant within the Hyperliquid ecosystem.
1. $HYPE Holdings and Cash
The company established a strong initial treasury consisting of 12.5M HYPE tokens and $300M in cash contributed by investors. It deployed $10.5M to repurchase approximately 3.0M PURR shares, reducing the fully diluted share count to 150.6M. It also deployed $129.5M to acquire roughly 5.0M additional HYPE tokens at around $25.9, increasing total HYPE holdings to 17.6M. As of now, the company has approximately $125M in remaining deployable capital.
2. $PURR Views on $HYPE and Treasury Strategy
@dschamis and the team remain very impressed by $HYPE’s growth, especially driven by Builder Codes and HIP-3. They highlighted that at peak Silver volume, Hyperliquid processed roughly 2% of total global Silver volume.
They also highlighted that BLP (Portfolio Margin) and HIP-4 are the two upcoming updates they are most excited about, as they believe these will further expand $HYPE’s TAM. He mentioned:
They also stated that they believe $HYPE is currently undervalued, citing valuation multiples such as P/E being significantly lower than traditional benchmarks like the S&P. That said, they emphasized they will buy or sell both $HYPE and $PURR using a valuation-driven approach.
From my understanding, they will buy (sell) $PURR when mNAV is significantly below (above) NAV, not when mNAV is in the 0.9–1.1 range. They will sell (buy) $HYPE when price is significantly above (below) their perceived fair value.
This helps explain why they are currently accumulating more $HYPE. They believe $HYPE is undervalued.
3. $PURR’s Role Within the Ecosystem
Today, a large part of $PURR’s value comes from providing U.S. investors access to $HYPE. David mentioned an HFT firm that actively trades crypto but currently cannot access $HYPE directly.
Another key role is increasing $HYPE visibility and understanding through direct investor meetings, TV appearances, and podcasts. David mentioned recognition has improved significantly, but a large audience still remains untapped.
That said, they also expressed interest in increasing their direct participation within the ecosystem and potentially generating operating income, for example by running a validator. They emphasized they are not a hedge fund and will only expand operating activities if they remain within their risk framework.
4. $PURR Net Asset Value Framework
They also introduced their framework around $PURR mNAV and mentioned they would release a new dashboard tracking NAV in real time, adjusting dynamically based on both $PURR and $HYPE prices.
They also stated they plan to update the dashboard weekly around company cash, purchases, and other key data, rather than only reporting when required by the SEC every quarter.
We personally like this announcement a lot.
5. $HYPE Outstanding Supply
David also shared their framework for estimating $HYPE outstanding supply, which we believe is very interesting and broadly aligns with our own way of thinking about circulating supply. Their framework suggests real supply is closer to approximately 47% of total supply.
I mostly agree with this framework, although I think real outstanding supply could be even lower. AF buybacks are structurally deflationary, meaning effective circulating supply should continue decreasing over time. It may also make sense to factor in future AF buybacks and burns when thinking about forward supply.
Regarding team allocation, there is limited additional analysis possible today due to lack of data. However, the team is currently unstaking approximately 90% less than the maximum allowed. I believe the majority of team supply will not hit the market for a very long time.
6. Conclusion
This is a brief summary, but I believe it captures most of the key points. I’d like to thank @dschamis, @rediamondjr, and their team for the work they are doing for Hyperliquid and the broader industry. They have been a net positive for the ecosystem, and I believe they are just getting started.
Great job @dschamis for your first earnings call as CEO.
Looking forward to future ones and to seeing @HypeStrat’s role within the ecosystem continue to expand from here. Link to earnings here.
