Hyperliquid Strategies: Why Should We Hold $HYPE?
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Hyperliquid Strategies: Why Should We Hold $HYPE?
Strong cash flow + connection to traditional equity markets, $HYPE is seen as a premium DAT asset and Wall Street's new favorite.
Navigating Web3 tides with focused insightsAuthor: GLC Research
Translation: TechFlow
In this piece, we dive deep into the Hyperliquid Strategies interview hosted by Keisan @Keisan_Crypto and Monk @defi_monk. The interview features Bob Diamond @rediamondjr and David Schamis @dschamis, the founders of Hyperliquid Strategies, whose sole mission is to maximize per-share value of $HYPE.
This discussion was packed with insights and passion, and we're excited to share some key takeaways.
If you missed this event, now is the perfect time to pause and understand why we’re bullish on $HYPE!
It’s not just us who are optimistic about $HYPE; sharp investors like Keisan and Monk also have strong confidence in it. And Bob and David—two seasoned professionals with outstanding track records in traditional finance—are also betting big on $HYPE.
Bob and David are no ordinary investors. They previously held key roles at renowned institutions such as Morgan Stanley, Barclays, and Salomon Brothers, accumulating decades of experience in traditional finance. They’ve long been active observers of the digital asset space, and now believe it's time to fully enter the industry.
Below is a recap of the highlights from this interview:
Question 1 (Monk): Why did you decide to create a DAT company focused on $HYPE?
Throughout their careers in traditional finance, Bob and David specialized in financial services businesses—particularly those generating substantial cash flow. They invested in banks, insurance companies, and especially brokers and exchanges, giving them deep familiarity with this business model.
Given this background, they found it unreasonable to invest in tokens lacking product-market fit or revenue fundamentals. As a result, over the past few years, they chose to remain on the sidelines of the crypto industry without jumping in prematurely.
All that changed when their partners introduced them to the concept of $HYPE. This was a familiar exchange business model—one with solid fundamentals, generating over $1 billion in annual cash flow and using its free cash flow to repurchase its own token. The opportunity was so clear and compelling that it was nearly impossible to ignore.
They quickly developed an action plan. Initially aiming to raise $300 million, they soon discovered that Paradigm and other major players were exploring similar ideas. To avoid competition, they opted for collaboration.
In a remarkably short time, fundraising reached an astonishing $888 million—far exceeding expectations. This not only reflects strong interest from traditional finance investors in Hyperliquid but also underscores the immense appeal of $HYPE.
Of this capital, 65% was raised directly in HYPE and 35% in cash, with approximately $300 million not yet deployed into HYPE.
Question 2 (Monk): How do you assess the potential demand for Hyperliquid Strategies?
They believe the potential demand for Hyperliquid Strategies will be very large.
Currently, most digital asset treasury companies focus on traditional crypto assets such as Bitcoin and Ethereum. However, $HYPE is different—it’s not easily accessible. Hyperliquid’s exchange is unavailable to U.S. users, making it nearly impossible for average American investors to buy $HYPE directly.
Another critical factor is that Hyperliquid is one of the few relatively new projects to break into the top ten crypto assets, rather than being a decade-old legacy project. This creates a significant opportunity to educate investors about Hyperliquid over the coming months and years.
Additionally, they emphasize the high quality of investors behind Hyperliquid Strategies. The investor base includes respected institutions such as Galaxy Digital, Pantera Capital, D1 Capital, Republic Digital, and 683 Capital.
With $900 million in committed capital at launch, their operational scale already far exceeds that of existing or potential competitors.
Therefore, they are confident in both the strength of their investor team and the size of their capital base, believing these factors will drive Hyperliquid Strategies’ success and attract strong market demand.
Question 3 (Monk): Has Hyperliquid Strategies started acquiring $HYPE?
The company announced the deal in mid-July and expects to close in Q4. Because shareholder approval is required, the transaction uses a “sign-and-close” structure. This setup also allows $HYPE contributors to exchange their holdings on a tax-free basis, avoiding taxable gains on low-cost positions.
Due to this transaction structure, the company has not yet acquired any $HYPE nor received cash proceeds. Once the deal closes, management plans to deploy most of the cash on the balance sheet into $HYPE, while retaining a small portion for operating expenses and ongoing public company needs.
Question 4 (Keisan): After accumulating $HYPE, what is your management strategy?
From day one, they plan to stake their $HYPE holdings to earn a yield slightly above 2%. A few months later, they will begin cautiously exploring potential DeFi opportunities on Hyperliquid that may offer higher returns.
However, they stress that these opportunities must carry little to no additional risk.
According to them, further ecosystem participation only makes sense if incremental returns reasonably offset increased exposure.
Question 5 (Keisan): How do you view $HYPE valuation metrics?
First, they focus on free cash flow (Free Cash Flow), although this metric can be slightly complex due to circulating supply and unlock mechanics. But even if a massive unlock happened tomorrow, they believe $HYPE would still trade at highly attractive levels—though they don’t expect this scenario to occur.
When they say $HYPE looks “cheap,” it’s not just based on traditional valuation multiples, but also growth potential. First, they believe Hyperliquid still has room to capture market share from competing perpetual contract platforms, enabling organic growth.
Additionally, they note that @hyperunit has added spot assets and native deposits on Hyperliquid, suggesting growth will also come from Unit and spot trading itself.
Regarding Builder Codes and HIP-3, they believe these areas are just beginning to show promise. They are impressed by the team’s execution, noting that just a few lines of code allow other frontends or wallets to integrate perpetual trading into their apps.
@phantom is a successful example, and the revenue performance from such integration has been impressive. They also mention opportunities for HIP-3 across other asset classes, which could eventually be traded via perpetual contracts.
They give an example: if someone wants to launch an equity trading business in a country, instead of building a new exchange or trading infrastructure from scratch, they could simply plug into Hyperliquid’s core architecture—a much more efficient approach.
They are excited about the idea of trading pre-IPO companies on perpetual markets, finding it highly appealing. They cite Circle as an example: as shareholders, they would have loved to see price discovery before its IPO, which priced at $31.
In summary, they believe the core business is already very attractively valued. On top of that, Builder Codes, HIP-3, and other features that can be built on Hyperliquid generate revenue permissionlessly for the protocol without adding significant operating costs. For instance, Phantom’s integration didn’t require hiring additional staff—the existing 11-person team handled it.
Finally, they shared an anecdote: when preparing for CNBC, a well-known figure in crypto told them: "You should go on CNBC and say that one day Hyperliquid will surpass Nasdaq."
While it sounds crazy, to them, it’s not impossible.
Question 6 (Keisan): How aggressively does Hyperliquid Strategies plan to acquire $HYPE after launch?
Keisan asked about Hyperliquid Strategies’ acquisition strategy post-launch, comparing it to Tom Lee’s approach at Bitmine.
They explained that as long as the company trades at a premium to net asset value (NAV), they will continuously seek to raise additional capital to acquire more $HYPE.
They also plan to explore using other financial instruments, focusing on those not readily available to individual investors. Their goal is to enhance NAV premium through specific tools, while always ensuring the security of the underlying asset $HYPE.
Question 7 (Keisan): Under what circumstances would you consider selling $HYPE?
David said he wouldn’t completely rule out the possibility, but the only scenario he could envision would be if the company’s stock traded at a significant discount. He emphasized that he hopes this never happens, but ultimately, they have a fiduciary duty to Hyperliquid Strategies’ shareholders.
In his view, every public company should aim to increase book value per share for investors, and his preferred method is for the company to trade at a premium, allowing it to issue shares and acquire more $HYPE.
Question 8 (Monk): What misconceptions about DATs do you think exist in the market?
Bob emphasized that $HYPE is fundamentally different from other DATs (digital asset treasuries). He pointed out the exchange’s exceptional performance in cash generation, continuous buybacks, trading volume, operational efficiency, and rapid market share capture.
In his view, Hyperliquid Strategies is objectively creating a highly valuable DAT because it enables U.S. equity investors to gain exposure to $HYPE.
David added that there’s still substantial capital in U.S. equities that cannot access the crypto market. Although crypto has performed exceptionally well over the past decade, its total size remains far smaller than the stock market. To him, this underscores the necessity of DATs and why they should trade at a premium.
This is especially true for Hyperliquid Strategies, given the difficulty of accessing $HYPE.
Finally, he concluded that whatever MicroStrategy’s premium is, Hyperliquid Strategies deserves an even higher one.
Question 9 (Keisan): Is there anything else you’d like to share about $HYPE and the broader ecosystem?
David said they are excited to introduce $HYPE to global audiences on platforms like CNBC and Bloomberg, and are equally enthusiastic about engaging with the community and the wider Hyperliquid ecosystem.
In response to a question raised by @andyhyfi at @HypurrFi, they explained that the current macroeconomic and regulatory environment has improved significantly compared to the Biden administration era, when Gary Gensler took a highly suppressive and negative stance toward crypto.
In their view, current developments indicate that the U.S. is moving in the right direction, creating a more favorable environment for innovation and progress. They noted that many of America’s most influential figures are now openly praising the crypto industry, and the largest companies are making major investments in blockchain.
Under these conditions, it’s hard not to feel optimistic about the industry’s future.
Conclusion (@GLC_Research)
Thank you for reading all the way through—we truly enjoyed putting together this interview recap.
Fresh and insightful voices are rare in the crypto community. That’s why we especially value experts from traditional finance (TradFi) joining the conversation and speaking so passionately about compelling crypto assets like $HYPE.
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