Hyperliquid Strategies' second earnings call highlighted accelerating HIP-3 and Trade[XYZ] momentum, a widening independence between $HYPE and broader crypto markets, and a new validator partnership with Unit Labs. Management also detailed continued treasury deployment and a strong quarter driven by HYPE's price performance.

1. Trade[XYZ] & HIP-3 Momentum

David Schamis highlighted the rapid success of HIP-3 adoption, with RWAs now representing five of the top ten markets on Hyperliquid. Silver and oil were particularly strong case studies, with notable volume spikes, especially during periods when traditional markets were closed.

“When you look at these volume numbers and what's happening globally, it's hard to argue that Hyperliquid hasn't very quickly become an important venue in oil trading. Traditional players are starting to take notice.”

2. HIP-4: Outcome Markets

While HIP-3 continues to gain traction, the focus is already shifting toward HIP-4. David emphasized that this is not about competing directly with platforms like Kalshi or Polymarket, but rather about unlocking a much broader market: options, insurance, and new financial primitives.

A key highlight is the ability for third-party builders to permissionlessly launch their own markets using HIP-4, effectively opening up a competitive and composable prediction market landscape.

3. Growing Mainstream Recognition

Over the past few months, traditional finance has started to catch up and better understand what Hyperliquid is building. That said, the information gap remains significant, and most market participants are still unaware of the platform.

4. $HYPE Correlation Dynamics

David shared a compelling chart showing the low correlation between $HYPE and broader crypto markets. During the silver-driven volume spike on Hyperliquid, $HYPE moved in the opposite direction of $BTC and $ETH, highlighting how Hyperliquid-specific activity can drive independent repricing events.

5. Balance Sheet & Capital Allocation

$HYPE holdings now stand at approximately 20M tokens, following roughly $216M deployed since listing. This includes an additional 7.3M HYPE purchased at an average price of ~$29.53. On the $PURR side, the company executed $10.5M in buybacks in December at an average price of ~$3.42, alongside share sales of 6.2M shares at ~$6.31. The company still holds approximately $102M in cash, providing significant flexibility for future deployments.

"When multiples are low, you buy back. When multiples are high, you issue and accumulate tokens."

David also noted that the early low correlation between $PURR and $HYPE enabled aggressive share buybacks earlier in the year (~30% correlation mid-January).

6. Validator Launch with Unit Labs

One of the most important announcements from the call was the launch of a validator in partnership with Unit Labs. Given Unit's reputation as one of the most impactful builders in the Hyperliquid ecosystem, this partnership is highly strategic, diversifying revenue streams and reducing staking-related costs. This aligns with the previously stated goal of deepening involvement within the Hyperliquid ecosystem, with the validator going live on May 11.

7. Quarterly Performance

Net income came in at approximately $150M, primarily driven by HYPE's ~40% price performance over the period. Staking revenue contributed approximately $2.6M, and interest income added roughly $1M. Cumulative losses stand at approximately $165M, driven by Q4 performance. Deferred tax expenses remain non-cash unless HYPE is sold, which is not aligned with the company's current strategy.

Conclusion

This is a brief summary, but I believe it captures most of the key points from the call. I'd like to thank David Schamis, Bob Diamond, and their team for the continued work they're doing for Hyperliquid and the broader industry. From day one, $PURR has done exactly what you'd expect from a DAT — managing buybacks and share issuance with discipline, steadily lowering their average cost basis on $HYPE, and now deepening their involvement in the ecosystem through the validator launch with Unit Labs. They have been a net positive for the ecosystem, and I believe they are just getting started.

Another strong quarter.