Hyperliquid Strategies Inc

Everyone is arguing about $USDH dying. They're missing the point entirely. What happened today is the single most important business move in Hyperliquid's history. Let me explain. Revenue, liquidity, politics, lobby, and what it means for the USDH vote debate. Coinbase is now the official treasury deployer of $USDC on Hyperliquid under AQAv2. Circle handles the technical side (CCTP, cross-chain infra). Both are staking hyperliquid:native. Native Markets agreed to sell the USDH brand assets to Coinbase. $USDH is sunsetting. But the mechanics it pioneered are not. They just got applied to a $4.7B asset instead of a $100M one. Let's break down why this is a win on every single front. LIQUIDITY The biggest complaint from traders and builders for months: fragmentation. $USDH had the alignment but not the liquidity. $USDC had the liquidity but not the alignment. You had to choose. That choice is gone. One stablecoin. One orderbook per pair. No split liquidity. No confusion for HIP-3 deployers picking a quote asset. No friction for new users bridging in. $4.7B in USDC on Hyperliquid, 2x year over year. That is the base generating yield now, not $100M. REVENUE Under AQAv2, the treasury deployer shares 90% of the reserve yield revenue with the protocol. Run the numbers on the current $USDC supply: $4.7B at 3.8% interest rate, 90% shared with the Assistance Fund = $160M+ per year flowing directly into HYPE buybacks. That is $440K per day. Every day. For context, USDH at peak supply was generating a fraction of this on $100M. The AQA model worked. It just needed to be applied at the right scale. POLITICS AND LOBBYING This is the angle most people are sleeping on. Coinbase is the largest publicly traded crypto company in the US. They spent over $100M on crypto lobbying and political action in the last cycle. They are the single most powerful voice for crypto regulation in Washington. The CLARITY Act markup is happening today. Coinbase has been one of its strongest advocates. Having them financially aligned with Hyperliquid, staking HYPE, operating as treasury deployer, is not just a liquidity play. It is a regulatory shield. Every conversation about "is Hyperliquid a US regulatory risk" just got a lot harder to make when Coinbase is literally staked into the network. Circle staking 500K HYPE and moving toward becoming a validator. Jeremy Allaire posting "Hyperliquid." That is institutional endorsement at the highest level. THE USDH QUESTION "Was USDH a failure?" "Was the vote theater?" "Did Native Markets just flip an asset?" No. USDH was a weapon. It was a credible threat that proved a protocol can demand yield sharing from stablecoin issuers. Before USDH, Hyperliquid had $5B+ in USDC generating $150-200M/year for Circle and Coinbase. The protocol saw none of it. USDH launched. The AQA model proved that yield can be redirected onchain, transparently, back to the protocol. It only reached $100M in supply but that was never the point. The point was forcing incumbents to the table. Basit said it best: the entire lifecycle of USDH from launch to sunset should be studied. Coinbase didn't come to Hyperliquid out of goodwill. They came because USDH proved they would lose the venue if they didn't align. "But Paxos offered better economics during the vote." Maybe on paper. But 95-100% of a stablecoin that might have also struggled to reach $100M in supply is still less revenue than 90% of $4.7B. The vote was never about picking the best yield split on a small asset. It was about creating the leverage to capture yield on the dominant one. WHAT THIS MEANS FOR BUILDERS USDC becomes the canonical quote asset for HIP-4 outcome markets. No more guessing which stablecoin to build around. Hyper Foundation is issuing grants to HIP-3 and HIP-1 deployers who integrated USDH to cover migration costs. Feeless conversions from USDH to USDC during the transition. For HIP-3 deployers running equity perps, commodity perps, outcome markets: one liquidity pool, one collateral asset, deeper books. SECOND ORDER EFFECTS Coinbase operating perps through Hyperliquid via builder codes? Not confirmed, but now structurally possible. Their existing perp product is weak. Hyperliquid's infrastructure is the best in crypto. The incentive alignment is there. Tether now has a clear path to compete. AQAv2 is an open spec. Any stablecoin issuer can stake 500K HYPE and share yield to become an aligned quote asset. Competition is good. AQAv2 becomes a blueprint for every other chain. Hyperliquid just proved that a protocol can force the largest stablecoin issuers in crypto to share revenue at the protocol level. No one has done this before. Hyperliquid.

Some key takeaways from $PURR second earnings call 1. Trade[XYZ] & HIP-3 momentum @dschamis highlighted the rapid success of HIP-3 adoption, with RWAs now representing 5 of the top 10 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: ~20M tokens (following ~$216M deployed since listing) - Additional purchases: 7.3M HYPE at ~$29.53 average - $PURR buybacks: $10.5M in December at ~$3.42 - $PURR Share sales: 6.2M shares at ~$6.31 The company still holds ~$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 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: ~$150M (primarily driven by ~$HYPE +40% performance) - Staking revenue: ~$2.6M - Interest income: ~$1M - Cumulative loss: ~$165M (driven by Q4 performance) - Deferred tax expenses remain non-cash unless $HYPE is sold, which is not aligned with the current strategy. --- Overall, from my perspective, $PURR has been doing, from day one, exactly what you would expect from a DAT, whether in how they manage buybacks and share issuance, or in how they’ve progressively lowered the average cost of $HYPE while increasing their involvement within the Hyperliquid ecosystem, now further reinforced by the launch of the validator with Unit Labs. The vision of Hyperliquid as the platform housing all of finance is materializing much more clearly today than it did in 2025, and @dschamis & @rediamondjr have remained fully committed throughout, even during Q4. Their execution and continued contribution to the Hyperliquid ecosystem deserve recognition, both in terms of strategy and the visibility they bring to Hyperliquid. Hope you'll find this summary useful. Hyperliquid.