Hyperliquid Strategies Inc Common Stock Q1 FY2026 earnings call

• David Shamus mentioned Hyperliquid is the largest digital asset treasury company for hype token, owns over 20 million hype tokens and over $100 million in cash. They are launching a validator, and HIP3 has seen real world assets like S&P 500, NASDAQ 100, oils and gold become large trading pairs on Hyperliquid. HIP4 (outcome markets) is being built, which is about options, insurance and allows deployers to permissionlessly build. They've deployed over $225 million of capital, bought back stock at $3.42 per share and sold shares at $6.31 per share. They are creating their own validator launching on May 11th, completed disposition of legacy Sonnet assets, and own 40% of NUCO called Guidant Biotherapeutics. - Brett Beldener discussed the strong third quarter driven by hype token appreciation, yield from hype holdings and interest income, operating expenses, tax considerations, balance sheet details including cash and cash equivalents, hype digital assets position and equity/net asset position.

The third quarter was primarily driven by the appreciation of the hype token. Hype appreciated from around $25.48 on December 31st, 2025 to $36.60 on March 31st, 2026, driving an unrealized gain on hype holdings of approximately $198.4 million. Staking revenue was $2.6 million, interest income on cash and cash equivalents was around $1 million, resulting in $202.4 million of treasury strategy income. Operating expenses were $7.2 million, income before taxes was $195.2 million, deferred tax expense was $42.7 million, and net income was $152.5 million. For the nine months ending March 31st, 2026, there was a pre-tax net loss of $104.9 million and a nine-month net loss after taxes of $165.4 million. Cash and cash equivalents at March 31st was $113.1 million. Hype digital assets position was approximately $689 million, holding approximately 18.8 million hype tokens.

Q: It seems like the narrative is shifting from hyperliquid being more than just a purpose exchange. I'm curious how conversations are evolving with institutional players following the launch of pre-IPO markets and HIP4.

A: David Shamus said there's a wide range of knowledge and understanding among institutional players. Some are deep in the ecosystem and interested in HIP4 and pre-IPO markets, while others need education. HIP3 has real effects on markets, HIP4 is topical due to prediction markets, and pre-IPO markets could have value for venture capitalists.

Q: 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 the leading market player in the hyperliquid ecosystem? How are you thinking about that?

A: David Shamus said they are proud to be partnering with Unit and TradeXYZ, and there are almost certainly more opportunities. Unit/TradeXYZ is respected and successful in the ecosystem, and they would love to find mutually accretive opportunities.

Q: Given about $100 million cash balance, what do you think is kind of the right level to hold versus not? turning that into, you know, staked hype? And what kind of the lowest balance you'd be comfortable holding?

A: David Shamus said they think 25 million is the absolute bare minimum, beyond that they think hard about other opportunities like ecosystem opportunities or buying additional hype. It's an ongoing discussion and not a static number.

Q: Has there been any update to the treasury strategy as far as the 1.1 by 0.9 X MNAV bands and your calc of MNAV? I know there was an update to the MNAV calc recently based on your difference. Curious if there's any others you'd call out that impacts that original framework.

A: David Shamus said the 0.9 to 1.1 band hasn't changed, it's somewhat art not science. The more additional revenues from the ecosystem, the more those numbers will go up over time.