Invest1 publisher3 min readPublished
Hyperliquid Strategies' 251% climb rests on a token Americans struggled to buy
Hyperliquid Strategies is up 251% this year while Bitcoin, Ethereum and Solana treasury companies have slumped. Its market value sits close to the worth of the HYPE it holds, so the gain looks more like the token's than the company's.
The Investor · Invest desk
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What happened
- Hyperliquid Strategies holds more than 35 million HYPE tokens worth roughly $3.3 billion, ten months after it launched.
- Atlas Merchant Capital and Paradigm announced an $888 million raise for the company in July 2025, with Atlas founding partner David Schamis as chief executive.
- Until May, buying PURR was the only easy way for American investors to own HYPE; asset managers then began rolling out Hyperliquid ETFs.
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Why it matters
- contradiction Fortune credits an operating model that earns revenue on the HYPE the company holds, while Ndinga credits timing; the ETFs remove the timing advantage and leave the model to justify the stock.
- constraint With the equity worth roughly what its tokens are worth, selling new stock cannot raise HYPE per share, so per-share growth has to come from revenue.
- decision American investors who bought PURR to reach HYPE can now choose an ETF, so the company has to give them a reason to own the wrapper.
- exposure PURR holders carry a single-token position whose supply story depends on Hyperliquid fee volume, since burned fees are what shrink HYPE's float.
Fortune's two balance-sheet figures sit close together. The company's market value has passed $3 billion [2] and its HYPE is worth roughly $3.3 billion [3], so the equity is worth at least about 91% of the tokens behind it [16]. The shares would trade at a premium to their HYPE only if the market value were well past $3 billion. The holdings are also worth about 3.7 times the $888 million raise announced in July 2025 [17]. Fortune does not split that growth between HYPE's price, later share sales and revenue earned on the tokens.
Fortune puts the gap with the Bitcoin, Ethereum and Solana treasury companies [4] down to design. Hyperliquid Strategies earns revenue from its holdings and uses it to add HYPE, raising the number of tokens tied to each share [5]. Eliezer Ndinga, quoted by Fortune, credits timing instead. "That timing explains much of the success Hyperliquid Strategies has experienced since Q4 of last year, accumulating billions of dollars in treasury assets," he said [9].
The timing he means is access. Hyperliquid is not legally available in the United States [7], and buying the token directly usually means setting up a wallet and connecting it to a decentralized exchange [15]. Until May, when asset managers began rolling out Hyperliquid ETFs, PURR was the only easy way for American investors to own HYPE [8].
The token is the third reason in Fortune's account. Hyperliquid charges trading fees in HYPE, pays part to validators and burns most of the rest [6], and its users now include traders of tokenized oil and gold [11]. HYPE is up more than 2,200%, according to CoinGecko data cited by Fortune [10].
From here the story can go three ways. If revenue keeps adding HYPE [5], the token count per share rises and the stock could earn a premium. If the ETFs take the American demand that only PURR could serve [8], the shares become a pass-through on HYPE and could trade below it. If trading on Hyperliquid slows, fewer fees are burned [6] and the token and the stock fall together.
Only the first path grows HYPE per share. At 91% of token value, the cash from a newly sold share buys 0.91 of the HYPE behind each existing share, so selling stock dilutes the holders [18]. That leaves the revenue Fortune describes as the one way to add tokens per share at today's price.
I think the evidence supports the token half of the case better than the structure half. A fee-burning token and a gap in US access explain a stock priced near its holdings. If investors valued the operating model, it would show up as a premium. The counter-thesis is Fortune's: that PURR expanded its treasury while posting outsize returns, which its peers did not [14]. This view would be wrong if a disclosure showed HYPE per share rising from revenue and the shares held above token value once the ETFs are established.
What to watch
- Any Hyperliquid Strategies disclosure of HYPE per share over time, split between tokens bought with raised capital and tokens added from revenue.
- PURR's market value against the value of its HYPE holdings as the Hyperliquid ETFs launched in May gather assets.
- Hyperliquid fee volumes and burn rates, the inputs that set how fast HYPE's supply shrinks.