Hyperliquid Strategies Inc Common Stock 2026 Q4 Earnings Call

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.