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Hyperliquid Strategies files a CFTC FCM application and posts $13.3 million in Q3 revenue
Summary
Nasdaq-listed Hyperliquid Strategies (PURR) said Thursday a subsidiary has filed an application with the CFTC to become a futures commission merchant, and reported third-quarter results, according to the company's PR Newswire release and The Block.
Subject to regulatory approval, the FCM would carry U.S. client accounts for permissioned markets deployed on Hyperliquid under HIP-3, letting the firm "play a role" in bringing perpetual futures to U.S. customers within a regulated framework; the company said there is no assurance on timing or outcome.
For the quarter ended Sept. 30, the release put staking revenue and validator commissions at $12.3 million and interest income at $1.0 million; The Block described total quarterly revenue as $13.3 million, above analyst estimates of about $10.6 million to $12 million depending on the data provider.
Net income was $620.6 million, driven mainly by $803.0 million in net unrealized gains on HYPE holdings, offset by a $172.3 million income-tax provision and $15.3 million in primarily non-cash committed-equity-facility expense, the company said.
The firm said it deployed $802 million in the quarter, including $785 million to buy 9.1 million HYPE tokens (treasury rising from 29.3 million at June 30 to about 38.52 million at Sept. 30) and $17 million to repurchase 2.7 million PURR shares, after raising $911 million under its committed equity facility.
Updates
- Update, : Update (Nov. 5, night): CoinDesk also reported Hyperliquid Strategies is seeking FCM status so a subsidiary, HypeStrat Markets, can carry U.S. client accounts for permissioned HIP-3 markets on Hyperliquid; CoinDesk said the August application via the National Futures Association is still pending, that the Hyperliquid platform itself remains closed to U.S. customers, and that the firm framed the FCM as how it intends to "bring markets deployed on Hyperliquid onshore," with no assurance on timing or approval.
- Update, : Update (Nov. 6): Cointelegraph also reported Hyperliquid Strategies' FCM push to bring Hyperliquid-based perpetual futures onshore for U.S. customers via permissioned HIP-3 markets, quoting CEO David Schamis on owning HYPE for protocol economics and using an FCM to bring markets onshore; Cointelegraph said the firm spent $785 million buying HYPE in the September quarter and that HIP-3 operators stake 500,000 HYPE to launch custom perps markets.
- Update, : Update (Nov. 6 noon): Decrypt also covered Hyperliquid Strategies' CFTC FCM application, emphasizing a permissioned HIP-3* path for approved traders with Hyperliquid as neutral infrastructure, repeating CEO David Schamis's line that the $802 million quarterly deployment and the FCM filing are "the same bet," and noting parallel U.S. efforts via Payward/Bitnomial (NinjaTrader Clearing as FCM) and ICE's TradeXYZ partnership.
Key facts
- CEO David Schamis: "We deployed $802 million this quarter and filed an application to become a futures commission merchant. Those two moves are the same bet."
- As of Sept. 30 the company reported $3,764.3 million in total assets, including $254.6 million in cash and cash-like instruments and $3,505.3 million in HYPE (at $90.99 per token), with $3,403.0 million in stockholders' equity and no debt.
- The Block noted NYSE parent Intercontinental Exchange agreed last week to partner with TradeXYZ on Hyperliquid-based perp futures for U.S. traders, with ICE operating exchange and clearing infrastructure.
- By Oct. 28, Hyperliquid Strategies said HYPE holdings had risen to 38.9 million at a blended cost of $56.35, with $245.3 million in remaining cash and cash-like instruments.