Hyperliquid Strategies (PURR) investor relations material

Executive summary

• Sept. 30 treasury held 38.52M HYPE valued at $3.5053B; NAV was $3.403B, cash and cash-like instruments were $254.6M, and debt was zero.

• HYPE holdings increased from 29.3M at June 30 to 38.5M at September 30.

• Treasury value ranked third among digital-asset treasury vehicles globally.

• A subsidiary applied to become an FCM to support regulated U.S. access to permissioned Hyperliquid markets, subject to regulatory approval.

Financial highlights

• Q3 net income was $620.6M, with pretax income of $792.9M and an income tax provision of $172.3M.

• An $803.0M unrealized HYPE gain was the primary driver of quarterly earnings.

• Revenue was $12.25M, primarily from staking and validator commissions; interest income was $1.0M.

• SG&A and R&D expense was $7.6M; other expense included $15.3M primarily related to the committed equity facility.

• Operating cash flow was negative $17.1M; LTM net income was $939.5M.

Outlook and guidance

• FCM application work is at an early stage; management indicated a hoped-for launch in three to six months, while timing remains difficult to predict and regulatory approval is required.

• FCM build-out is expected to require a single-digit-million-dollar one-time project expense; further costs are possible and progress depends on near-term profitability potential.

• HIP-3 permissioned-market functionality is optional and additive; its initial release was on testnet, with specifications preliminary.

• Potential HIP-3/HIP-3* token-staking arrangements remained under consideration, with requirements and revenue terms still being determined.

• Existing resources were expected to fund anticipated operations through one year from issuance of the interim statements; future working-capital funding may not be available on acceptable terms.