Hyperliquid Strategies Inc., the largest publicly traded HYPE treasury company, reported $620.6 million in quarterly profit, according to its latest financials. The result was mostly attributable to unrealized gains on its HYPE holdings, which totaled 38.9 million tokens at an average cost of $56.35 per token, producing $803 million in unrealized gains.
Capital deployment and token purchases
The company raised $911 million in equity capital for the quarter ending September 30 and spent $785 million to acquire 9.1 million HYPE tokens. CEO David Schamis said, "We deployed $802 million this quarter and filed an application to become a futures commission merchant. Those two moves are the same bet."
FCM application and HIP-3*
Hyperliquid Strategies announced that its subsidiary has applied for registration as a US futures commission merchant (FCM). An FCM is a registered intermediary that holds customer funds and handles futures orders. The subsidiary would serve permissioned markets under HIP-3*, a planned upgrade whose regulatory approvals are pending.
If approved, the company said Hyperliquid would gain a regulated entry point for US traders. However, the company stated there is no guaranteed timeline for HIP-3* approval.
Market context
Hyperliquid was dominant in the part of on-chain finance that delivers real fees, and this value flows back to HYPE holders through systematic buybacks, the CEO added. The company's stock, PURR, is highly correlated to HYPE token price swings.
On October 29, billionaire American investor Stan Druckenmiller tweeted about Hyperliquid. Santiment Intelligence reported that this pushed the token price to local highs of $97. Whale wallets were steadily selling their holdings during the rally. Four whales closed their longs entirely, banking around $5 million. The largest of these dumped $225k every five minutes when the price was around $95 and short-term sentiment was euphoric.
The weekly bullish structure extended from $51.13 to $97.99. The daily structure was also bullish, but the $75.17 swing low from September has been challenged once already. The recent retreat from $97 revealed the sellers' strength. A deeper drawdown below $75.17 remains likely. In that case, swing traders and investors should watch the $60.50-$68.35 demand zone.
