Hyperliquid Strategies (NASDAQ:PURR) is applying to establish a futures commission merchant for U.S. customers, executives said, as the company reported $621 million in net income for the quarter ended Sept. 30, driven largely by unrealized gains on its HYPE token holdings.
CEO David Schamis said the proposed business would serve as a neutral bridge between U.S. customers and regulated markets built on the Hyperliquid blockchain. The company does not plan to operate its own market, he said.
The application is in its early stages, and the company is working with the National Futures Association and Commodity Futures Trading Commission, executives said. Chief Operating Officer Jeroen Nieuwkoop said a potential launch in three to six months was an aspirational timeframe, but cautioned that it was difficult to predict.
HYPE gains drive quarterly profit
Chief Financial Officer Brett Beldner said the company’s treasury strategy generated approximately $816 million in the fiscal first quarter of 2027. That included $803 million in unrealized gains on HYPE and $12.3 million in staking and validator commission revenue.
HYPE rose to $90.99 at Sept. 30 from $65.04 at June 30, Beldner said. The company also purchased tokens during the quarter at average prices below the period-end price.
Operating expenses were $7.6 million, including approximately $800,000 in business development costs related to the proposed futures commission merchant. The company also recorded $15.3 million in other expenses related to changes in the fair value of its share price between issuance and settlement of equity under its equity facility.
Pretax income was approximately $793 million. After an income tax provision of about $172 million, the company recorded net income of approximately $621 million, Beldner said.
For the four quarters representing roughly 10 months since the company closed its deal in December, net income was approximately $939.5 million, he said.
Treasury expands as company raises capital
Hyperliquid Strategies ended the quarter with approximately 38.5 million HYPE tokens, up from 29.3 million at the end of June, according to Nieuwkoop. Schamis said the company’s holdings had since increased to 38.9 million tokens, with about $245 million in cash.
During the quarter, the company raised approximately $911 million net of fees by issuing 74.6 million shares at an average net price of $12.20, Nieuwkoop said. It spent $785 million to acquire 9.1 million HYPE tokens at an average price of $86.44.
The company also spent about $17 million repurchasing approximately 2.7 million shares at an average of $6.36 when its stock traded materially below net asset value, Nieuwkoop said. Quarter-end cash and cash-like instruments totaled $255 million, and the company had no debt.
Net asset value rose to approximately $3.4 billion from $1.9 billion over the quarter, Nieuwkoop said. The company’s HYPE holdings were valued at approximately $3.5 billion at Sept. 30.
FCM costs and potential opportunities
Schamis estimated the one-time project expense to get the proposed futures commission merchant running would be in the single-digit millions of dollars. The company would move forward, subject to approvals, only if it saw an opportunity to become profitable in the near term, he said.
Beldner said the treasury business’s targeted base expense run rate remains approximately $4 million to $4.5 million, excluding equity-related compensation. He said equity compensation would add roughly $1.5 million to $2 million per quarter, while additional costs for the proposed business were still being assessed.
Asked whether the company might provide HYPE tokens to third-party market deployers in exchange for a share of economics, Schamis said the company had held discussions but would need to assess the risks and potential profit. He described the answer as “definitely maybe.”
Executives highlight network growth
Schamis said Hyperliquid had recorded more than $5 trillion in trading volume since inception and had 330,000 monthly unique wallets. He said real-world assets represented 51% of the platform’s volume in July.
The CEO also said $1.4 billion had been used to buy back 48.3 million HYPE tokens since inception. He said 99% of fees currently go toward token buybacks. Information about Hyperliquid’s operations presented on the call was based on publicly disseminated information and had not been independently verified by Hyperliquid Strategies, the company said.
Looking ahead, Schamis identified U.S. trading of real-world assets and prediction markets as two areas of particular interest. He also said he did not expect the U.S. midterm election results to have a material impact on Hyperliquid’s path into the U.S.
About Hyperliquid Strategies (NASDAQ:PURR)
Hyperliquid Strategies Inc is a digital asset treasury company whose primary focus is to maximize shareholder value through accumulating HYPE, the native token of Hyperliquid, a high-performance blockchain custom-built to house all of finance. Hyperliquid Strategies Inc, formerly known as Sonnet BioTherapeutics Holdings Inc, is based in NEW YORK.
