Hyperliquid Keeps Buying HYPE Despite $165M Paper Loss

Hyperliquid Strategies continued to purchase HYPE tokens despite reporting a $165 million paper loss for the July 2025–March 2026 period, according to a May 7 SEC filing. The filing shows the company held 20 million HYPE tokens as of April 29, 2026, and had about $103 million in cash.

The $165 million loss is primarily an accounting figure. About $64 million arose from unrealized market losses after the firm bought HYPE at higher prices. The company recorded a $35.6 million write-off tied to legacy medical research projects inherited from a prior acquisition of Sonnet BioTherapeutics. It also booked a $60.5 million deferred tax liability linked to HYPE’s price increase. The filing shows roughly $5 million went to operating costs such as payroll, rent and legal fees.

Hyperliquid posted unrealized gains in the January–March 2026 quarter. The company recorded $198.4 million in unrealized gains, applied $42.7 million in tax adjustments and other costs, and reported a net profit of $152.5 million for the quarter. On March 31 the company held 18.83 million HYPE tokens valued at $36.60 each, a total of $689 million. Cash on hand was $113.1 million at quarter end; the firm says liquidity declined to about $103 million after continued token purchases and expenses. Total assets were $809.4 million, the company reported no debt, and shareholders’ equity was $743.5 million.

The filing announced a partnership with Unit Labs. Under the agreement Hyperliquid will provide HYPE tokens as capital for a shared validator while Unit Labs supplies the technical infrastructure to operate it. Anchorage Digital Bank will custody the tokens allocated to the validator. Validators earn network fees; Hyperliquid expects to receive fee rewards as platform usage grows.

The SEC filing lists material risks tied to the company’s strategy. It warns that a sustained decline in HYPE’s price would reduce the value of token holdings and could force token sales to cover operating costs. The filing also identifies the company’s reliance on trading volume and fee income and notes significant legal, commercial, regulatory and technical uncertainty regarding HYPE tokens.

The SEC filing includes a statement from CEO David Schamis: “This quarter marked meaningful progress in establishing HSI as the leading public vehicle for capital-efficient HYPE exposure, amid Hyperliquid’s continued dominance in on-chain finance.”