Hyperliquid Strategies seeks FCM registration, reports $620.6M Q3 profit

Hyperliquid Strategies Inc. (NASDAQ: PURR) has applied to establish a U.S.-regulated futures commission merchant business while reporting $620.6 million in net income for the quarter ended September 30, largely driven by gains in its HYPE token holdings.

Summary

• Hyperliquid Strategies reported $620.6 million in quarterly net income, largely driven by $803 million in unrealized HYPE gains.
• A subsidiary has applied for futures commission merchant registration to serve proposed U.S. perpetual futures markets.
• The company purchased 9.1 million HYPE tokens during the quarter, increasing its September 30 holdings to approximately 38.5 million.
• Hyperliquid Strategies raised $911 million in equity capital during the quarter and spent $17 million repurchasing shares.
• By October 28, its HYPE holdings had reached approximately 38.9 million tokens, while available cash stood at $245.3 million.

The company’s November 5 financial results confirmed that a subsidiary had submitted an application for futures commission merchant (FCM) registration. The proposed business would serve U.S. customers trading perpetual futures on permissioned markets using Hyperliquid’s blockchain infrastructure, subject to regulatory approval.

“We deployed $802 million this quarter,” said CEO David Schamis, referring to the company’s HYPE purchases and share repurchases. He linked the treasury investment and proposed futures business to the firm’s strategy of building operations around Hyperliquid.

Hyperliquid Strategies seeks U.S. futures registration

The proposed FCM would carry customer accounts for markets operating under Hyperliquid’s planned HIP-3* framework. The framework would allow independent operators to launch permissioned trading markets while using the blockchain as the underlying infrastructure.

Under the arrangement described by Hyperliquid Strategies, separate market operators would establish their own trading venues, while the proposed FCM would handle customer accounts within a regulated structure.

The company has not announced when its subsidiary expects to receive registration or begin serving customers. Approval of the FCM application would not automatically authorize every proposed perpetual futures market.

“There can be no assurance as to the timing or outcome,” the company cautioned in its announcement, referring to the application and regulatory approvals.

crypto.news contacted Hyperliquid Strategies for additional comments but had not received a response by publication time.

The application follows Intercontinental Exchange’s October agreement with Trade[XYZ] to develop U.S.-regulated perpetual futures markets using Hyperliquid infrastructure.

ICE, which owns the New York Stock Exchange, plans to provide exchange and clearing services, while Trade[XYZ] would design the markets. That project requires regulatory approval and has not announced a launch date.

HYPE holdings generate $803 million in unrealized gains

Hyperliquid Strategies recorded $620.6 million in quarterly net income, with $803 million in unrealized gains on its HYPE holdings accounting for most of the reported profit.

The gains came from changes in the recorded value of tokens the company continued to hold. They did not represent $803 million in proceeds from completed HYPE sales.

Its results included a $172.3 million income tax provision and $15.3 million in expenses primarily associated with its committed equity facility.

The company earned $12.3 million from staking revenue and validator commissions, alongside $1 million in interest income. Selling, general and administrative expenses and research and development costs totaled $7.6 million.

At September 30, Hyperliquid Strategies reported total assets of $3.76 billion, including $3.51 billion in HYPE tokens valued at $90.99 each.

Cash and cash-like instruments stood at $254.6 million, while stockholders’ equity reached $3.40 billion. The company reported no debt.

Hyperliquid Strategies adds 9.1 million HYPE in Q3

During the quarter, the company raised $911 million through its committed equity facility and deployed $802 million across token purchases and stock repurchases.

It spent $785 million acquiring approximately 9.1 million HYPE, bringing its treasury to 38.5 million tokens at September 30, compared with 29.3 million at June 30.

The firm separately spent $17 million repurchasing 2.7 million PURR shares.

Its previous fiscal-year financial results showed that HYPE holdings had grown to 29.3 million tokens by June 30, when the treasury was valued at roughly $1.9 billion.

By October 28, Hyperliquid Strategies had accumulated approximately 38.9 million HYPE, including staking and validator rewards.

Its cumulative spending on approximately 25.9 million acquired tokens reached $1.58 billion, with an average purchase price of $61.13. The company reported a blended cost of $56.35 across its total holdings.

The firm had repurchased approximately 5.8 million shares for $27.9 million by that date, while cumulative equity capital raised reached $1.58 billion.

Remaining cash and cash-like instruments stood at $245.3 million.

Institutional investors hold PURR shares

Hyperliquid Strategies operates one of the largest publicly traded corporate treasuries focused on HYPE, offering equity investors exposure to the token through its Nasdaq-listed shares.

In September, crypto.news reported a $23 million investment in PURR by Stanley Druckenmiller’s Duquesne Family Office, based on its second-quarter regulatory filing.

The company said its Hyperliquid Strategies x Unit validator had become the network’s largest non-Foundation validator.

Hyperliquid Strategies reported that approximately $834 million in value accrued to the Hyperliquid ecosystem during the 12 months ended September 30, based on publicly available information.

Meanwhile, HYPE traded at around $77 at the time of reporting, down more than 7% in the past 24 hours, according to crypto.news market data.