HL RADIO #45 - DAVID SCHAMIS (HYPERLIQUID STRATEGIES) - LIVE @ HL SINGAPORE 2026 - HYPERLIQUID STRATEGIES INC

Explicit Guidance:

• None provided. The transcript contains no specific financial metrics (revenue, earnings, margins, capex, etc.) or quantitative forecasts for the company or the broader economy.

Business-Segment Outlook:

• Cost Structure & Efficiency: Management expects the company's operating costs relative to the asset base to decrease significantly throughout 2026 as the business scales and amortizes fixed costs over a larger revenue base, a structural advantage over ETFs.
• Ecosystem Participation: The company is actively pursuing "big things" within the Hyperliquid ecosystem beyond simple holding or small validators roles; specific initiatives are in the development stage but not yet announced, aiming to create material value drivers.
• Strategic Focus: Future initiatives will prioritize high-impact developments ("big things that move the needle") over immaterial operational activities, aiming to justify trading at a long-term premium.

Market and Competitive Outlook:

• Hyperliquid US Expansion: A major inflection point is expected over the next 12 months regarding Hyperliquid's entry into the U.S. market, described as a complex commercial and regulatory process involving potential partners (e.g., Payward/Kraken) rather than a simple exchange launch.
• Institutional Adoption: Management anticipates a continued, intensive education process with Traditional Finance (TradFi) institutional investors over the coming year to shift perceptions from "crypto degen" to a core financial infrastructure play with access to trillion-dollar markets (equities, rates, prediction markets).
• Market Share Potential: The Total Addressable Market (TAM) is viewed as "monstrous," with potential to capture share from incumbents like Coinbase and enter non-crypto asset classes.

Macro / Industry Outlook:

• Regulatory Environment: The trajectory of Hyperliquid becoming "core underpinning of the global financial system" is contingent on the development of functional regulatory structures in the U.S. (SEC) and E.U., and the engagement of incumbent U.S. partners (DCOs, DCMs, FCMs) within the next 12 months.
• Market Maturity: Management projects that the current "fringe" status of the platform will transition to a central role in global finance within a 12-month window, contingent on regulatory and partnership milestones.

Strategic Initiatives:

• US Market Entry: Anticipated completion of commercial and regulatory arrangements for U.S. access, with management predicting these developments will be "in the rear view mirror" one year from the interview date.
• Partnership Formation: Active pursuit of partnerships with established TradFi institutions to facilitate onboarding for U.S. and non-U.S. institutional clients, replacing the current decentralized wallet model.
• Validator Operations: Continued role as a network validator, though deemed immaterial to financial impact; focus shifting toward undisclosed, high-value ecosystem integrations.

Risks and Headwinds to Outlook:

• Regulatory Uncertainty: The timeline and feasibility of U.S. market entry remain contingent on "financial deals," "commercial deals," and "regulatory environment" alignment, presenting a variable timeframe risk.
• Execution Complexity: The path to U.S. launch involves multiple moving parts (partners, regulators) that could delay the projected 12-month inflection point.
• Management Caveats: Management explicitly acknowledges the possibility of error, stating "I could be wrong, I hope not" regarding the 12-month prediction for U.S. market developments.

Management Tone on the Future:

• Confidence Level: High. Management repeatedly expresses strong conviction ("without a doubt," "most interesting thing," "that's my call") regarding the 12-month timeline for U.S. market entry and the structural evolution of the platform.
• Hedges: Uses phrases like "my guess is," "I don't know exactly what it's going to look like," and "might still be growing" to acknowledge uncertainty in the specific mechanics while maintaining confidence in the outcome.
• Strategic Discipline: Emphasizes adherence to a long-term playbook (buying back below MNAV, issuing above) and resisting "fog of war" distractions, signaling a disciplined approach to capital allocation and strategic execution.

Miscellaneous:

• No specific dividend, buyback, or M&A financial parameters were discussed beyond the general description of the MNAV-based share buyback/issuance strategy.