Company Reports Record $31.0M Net Income and $53.7M Adjusted EBITDA((8) ()
Announcing New HAUS Agreement with Entropy, an Upcoming HIP-3 Deployer
1 Million HYPE Tokens Redeployed to Support HIP-3 & HIP-4 Markets Since June 2026
Sale of Remaining Legacy Life Sciences IP to Arctic Vision Executed in July 2026
DALLAS, Aug. 12, 2026 (GLOBE NEWSWIRE) -- Hyperion DeFi, Inc. (NASDAQ: HYPD) ("Hyperion DeFi" or the "Company"), the first U.S. publicly listed DeFi company building on Hyperliquid, today reported results for the second quarter ending June 30, 2026.
"We are pleased to report a second consecutive quarter of record Net Income", said Hyunsu Jung, CEO of Hyperion DeFi. Mr. Jung continued, "In our twelve months of operating performance, we have redefined what it means to be a digital asset treasury. Not only have we substantially grown our treasury position in HYPE, but we have launched multiple scalable businesses and built new products and services on Hyperliquid, all while reducing our costs over time. We continue to position ourselves as the premier institutional gateway to DeFi innovation, and are immensely proud to announce additional partnerships as part of today's release as we deliver on our mission to revolutionize blockchain financial services."
Q3'25, Q4'25, Q1'26, and Q2'26 Summary GAAP and Non-GAAP Financial Measures
(Figures in $) Q3 2025 Q4 2025 Q1 2026 Q2 2026
--------------------------- ------------ ------------ ----------- ------------
GAAP Gross Profit 302,506 192,987 244,271 357,693
Adjusted Gross
Non-GAAP Profit(1) 439,386 820,997 959,568 1,150,035
--------- ---------------- ------------ ------------ ----------- ------------
HYPE Digital
GAAP Assets 37,954,590 16,233,941 25,286,164 74,119,231
Gross HYPE
Non-GAAP Holdings(4) 77,751,604 47,837,901 71,037,227 132,635,212
Net Asset
Non-GAAP Value(9) 74,545,583 44,154,737 69,873,504 134,226,478
--------- ---------------- ------------ ------------ ----------- ------------
Selling, General
and
Administrative
GAAP Expense 2,594,130 4,530,542 4,493,604 3,918,591
Operating
Expenses
Excluding
Stock-Based
Non-GAAP Compensation(5) 4,315,016 3,007,135 2,975,883 2,344,734
--------- ---------------- ------------ ------------ ----------- ------------
Net Operating
(Income)
GAAP Expenses (4,125,685) 39,958,264 (8,487,848) (30,650,049)
Treasury Gains
Non-GAAP (Losses)(6) 11,868,872 (36,783,228) 21,451,862 54,815,626
--------- ---------------- ------------ ------------ ----------- ------------
Total Other
Income
GAAP (Expense), Net 2,197,391 (288) 108,431 (56,779)
Adjusted Other
Income
Non-GAAP (Expense)(7) (42,240) 48,717 52,585 31,919
--------- ---------------- ------------ ------------ ----------- ------------
Net Income
GAAP (Loss) 6,625,582 (39,765,565) 8,840,550 30,950,963
Adjusted
Non-GAAP EBITDA(8) 7,951,003 (38,920,649) 19,488,132 53,652,846
--------- ---------------- ------------ ------------ ----------- ------------
Net Cash and
Cash
Equivalents
Used in
Investing
GAAP Activities (20,112,041) (6,319,039) (1,472,835) (5,642,387)
Adjusted Net
Investing Cash
Non-GAAP Flow(17) (20,112,041) (6,319,039) (1,472,835) (6,165,672)
--------- ---------------- ------------ ------------ ----------- ------------
Net Cash and
Cash
Equivalents
Used in
Operating
GAAP Activities (2,822,819) (4,190,147) (4,064,063) (3,098,419)
Adjusted Net
Operating Cash
Non-GAAP Flow(18) (2,822,819) (3,976,135) (2,607,344) (2,124,382)
All figures in this press release are not audited. Throughout this document, totals may not sum due to rounding. Calculations are based on unrounded results. This press release includes certain non-GAAP financial measures (including on a forward-looking basis) such as Adjusted Gross Profit, Gross HYPE Holdings, Net Asset Value, Operating Expenses Excluding Stock-Based Compensation, Treasury Gains (Losses), Adjusted Other Income (Expense), Adjusted EBITDA, Adjusted Net Investing Cash Flow, and Adjusted Net Operating Cash Flow. Please see "Footnotes" and "Non-GAAP Measures of Financial Performance" for reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures and important additional information.
*Cumulative figures for Adjusted EBITDA(8) as of Q3 2025 reflect the three months ended September 30, 2025, and as of Q2 2026 reflect the twelve months ended June 30, 2026. Please see "Footnotes" and "Non-GAAP Measures of Financial Performance" sections for detailed definitions and reconciliations to the nearest GAAP Metric.
Please see "Footnotes" and "Non-GAAP Measures of Financial Performance" sections for detailed definitions and reconciliations to the nearest GAAP Metric.
Adjusted Gross Profit(1) (in $ thousands) Q3'25 Q4'25 Q1'26 Q2'26 QoQ Growth Ecosystem Rewards - 285 150 90 (40%) DeFi Monetization <1 102 245 158 (36%) Yield Enhancement 78 79 211 334 +58% Validator Commissions 21 49 40 42 +4% Staking Yield 340 305 313 527 +69% Adjusted Gross Profit(1) 439 821 960 1,150 +20% =================================== ===== ====== ====== ====== ========== Multiple vs. Staking Yield 1.3x 2.7x 3.1x 2.2x % Earned in Cash* 18% 22% 48% 50% HYPE Earned in Staking & Validating(2) 7,895 10,076 11,458 11,115 Effective Average HYPE Price In-Period(3) 45.76 35.12 30.82 51.23
*The portion of Adjusted Gross Profit(1) earned in cash, cash equivalents, and stablecoins(16) . Please see "Footnotes" and "Non-GAAP Measures of Financial Performance" sections for detailed definitions and reconciliations to the nearest GAAP Metric.
HYPE Treasury Over Time 6/30/25* 09/30/25 12/31/25 3/31/26 6/30/26 Basis(14) Gross HYPE Tokens(2) 1.31 M 1.72 M 1.88 M 1.94 M 2.04 M 2.04 M HYPE Token Price $34.8 $45.2 $25.4 $36.6 $65.0 $39.7 Gross HYPE Holdings(4) $45.5 M $77.8 M $47.8 M $71.0 M $132.6 M $81.0 M ---------------- -------- -------- -------- ------- -------- --------- Cash, Cash Equivalents, and Stablecoins(16) $7.5 M $8.2 M $6.5 M $9.1 M $11.8 M
*The June 30, 2025 Gross HYPE Holdings figure represents HYPE Digital Assets held at cost basis. Please see "Footnotes" and "Non-GAAP Measures of Financial Performance" sections for detailed definitions and reconciliations to the nearest GAAP Metric.
Non-GAAP Income Summary (Figures in $) Q3 2025 Q4 2025 Q1 2026 Q2 2026 Adjusted Gross Profit(1) 439,386 820,997 959,568 1,150,035 Operating Expenses Excluding Stock-Based Compensation(5) 4,315,016 3,007,135 2,975,883 2,344,734 Treasury Gains (Losses)(6) 11,868,872 (36,783,228) 21,451,862 54,815,626 Adjusted Other Income (Expense)(7) (42,240) 48,717 52,585 31,919 Adjusted EBITDA(8) 7,951,003 (38,920,649) 19,488,132 53,652,846 ============================ ========== ============ ========== ==========
Please see "Footnotes" and "Non-GAAP Measures of Financial Performance" sections for detailed definitions and reconciliations to the nearest GAAP Metric.
Non-GAAP Cash Flow Summary (Figures in $) Q3 2025 Q4 2025 Q1 2026 Q2 2026 Adjusted Net Operating Cash Flow(18) (2,822,819) (3,976,135) (2,607,344) (2,124,382) Adjusted Net Investing Cash Flow(17) (20,112,041) (6,319,039) (1,472,835) (6,165,672) Net Cash Provided by Financing Activities 23,625,749 8,596,884 6,606,942 10,997,100 Change in Cash, Cash Equivalents, and Stablecoins(16) 690,889 (1,698,290) 2,526,763 2,707,046 ========================= ============ =========== =========== =========== Ending Cash, Cash Equivalents, and Stablecoins(16) 8,223,180 6,524,890 9,051,653 11,758,699 ------------------------- ------------ ----------- ----------- -----------
Please see "Footnotes" and "Non-GAAP Measures of Financial Performance" sections for detailed definitions and reconciliations to the nearest GAAP Metric.
Adjusted 2026 Gross Guidance Profit(1) FY'26 vs. 2025 Guidance Q3'25 Q4'25 FY'25 Q1'26 Q2'26 Q3'26 Q4'26 Guidance Actual Initial Guidance (Q4'25 A) $0.44M $0.82M $1.28M - - - - $4M - $6M 4x ---------- ------ ------ ------ ------ ------ ----- ----- --------- -------- Current Guidance (Q2'26 A) $0.44M $0.82M $1.28M $0.96M $1.15M - - $5M - $7M 5x
Please see "Footnotes" and "Non-GAAP Measures of Financial Performance" sections for detailed definitions and reconciliations to the nearest GAAP Metric.
HYPD Investment Thesis & 1-Year Trailing Results
In June of 2025, Hyperion DeFi was born from what was formerly Eyenovia. We revamped the company's operating strategy to the accumulation of HYPE and directly building in the Hyperliquid ecosystem. We made a firm commitment that we would be more than just HYPE, benefitting from not just holding the asset, but uniquely building multiple business atop it that have the potential to leverage it profitably. Our model is no longer a concept that we ask investors to envision, it has become reality.
Our unique strategy shares in multiple frontiers of value creation at the same time. Those three frontiers include (1) our growing HYPE treasury, (2) our scalable DeFi businesses, and (3) our embedded economic upside in the Hyperliquid ecosystem. We call this our HYPD "Triple-Dip" Strategy, and we believe our results over the past twelve months speak for themselves.
-- Growing HYPE Treasury: From June 2025 to June 2026, our Gross HYPE
Tokens(2) have increased 56% from 1.31 million to 2.04 million HYPE
Tokens.
-- Five Scalable Businesses: From Q3 2025 to Q2 2026, our quarterly Adjusted
Gross Profit(1) has grown 162% from $0.4 million to $1.2 million as our
DeFi businesses have begun to ramp. We have consistently earned 2x-3x
base HYPE staking yield over the past three reporting quarters.
-- Embedded Economic Upside in the Hyperliquid Ecosystem: We have received
tokens, equity, or future rights to tokens or equity in four early-stage
builders on Hyperliquid: Kinetiq, HyperLend, Silhouette, and Skew.
-- Declining Cost Base: From Q3 2025 to Q2 2026, our Operating Expenses
Excluding Stock-Based Compensation(5) declined 46% from $4.3 million to
$2.3 million. Our legacy biotech segment has been wound down as of June
30, 2026, and in July, we sold all remaining Optejet IP to Arctic Vision.
-- Improving Cash Flows: From Q3 2025 to Q2 2026, quarterly Adjusted Net
Operating Cash Flow(18) has declined from ($2.8 million) to ($2.1
million) dollars (25% decline), both as a function of reduced costs and
ramping DeFi businesses. For the past two quarters, 40%-50% of our
Adjusted Gross Profit(1) was denominated in cash, cash equivalents, and
stablecoins(16).
-- Guidance: We continue to anticipate $5 million to $7 million Adjusted
Gross Profit(1) in 2026, approximately 5x our 2025 FY results. And, we
anticipate our Adjusted Net Operating Cash Flow(18) to flip positive by
the end of 2026.
Adjusted Gross Profit(1) in Q2'26 and Q1'26
Adjusted Gross Profit(1() , a Non-GAAP Metric, aims to capture all of Hyperion DeFi's value-add operating business activities beyond gains and losses in our digital asset treasury. In total, Adjusted Gross Profit(1() increased +20% quarter-over-quarter to $1.15 million in Q2'26 from $960 thousand in Q1'26. The +20% quarterly sequential growth rate in Q2'26 compares to +17% in Q1'26. Below is a summary of all five of our operating business activities included within Adjusted Gross Profit(1() in these periods:
1. Staking Yield: We stake our HYPE to our Validator and earn rewards.
-- On a dollar basis, our HYPE earned from staking generated $527
thousand Adjusted Gross Profit(1) in Q2'26 versus $313 thousand in
Q1'26 (+69% quarter-over-quarter), largely driven by an increase
in the Effective Average HYPE Price In-Period(3) to 51.2 in Q2'26
from 30.8 in Q1'26.
2. Validator Commissions: The Company operates its Validator under a Joint
Validator Operators Agreement (together with Kinetiq and MAVAN) and earns
commissions on rewards delivered to third-party tokens delegated to the
Validator.
-- On a dollar basis, our HYPE earned from validator commissions
generated $42 thousand Adjusted Gross Profit(1) in Q2'26 versus
$40 thousand in Q1'26 (+4% quarter-over-quarter).
-- Approximately 7 million HYPE tokens were delegated to our
Validator as of July 31, 2026(2).
-- In June 2026, Blockdaemon announced it has selected Kinetiq x
Hyperion as their institutional staking partner on Hyperliquid.
-- We continue to explore opportunities to generate income by
building on top of our existing validator infrastructure.
-- In total, the Company earned 11.1 thousand HYPE tokens from
staking and validating activities in Q2'26, versus 11.5 thousand
in Q1'26(2).
3. Yield Enhancement: The Company pursues accretive strategies to enhance
yield earned on its tokens.
-- Yield Enhancement activities generated $334 thousand Adjusted
Gross Profit(1) in Q2'26 versus $211 thousand in Q1'26 (+58%
quarter-over-quarter).
-- Q2'26 and Q1'26 Yield Enhancement activities included multiple
HYPE volatility strategies OTC and on-chain.
-- In Q1'26, we began executing within our Institutional Volatility
Income Vault, in partnership with the Rysk protocol, further
optimizing our Yield Enhancement capabilities while building the
infrastructure to accommodate third-party execution within Rysk
Premium in the future.
4. DeFi Monetization: The Company supports and monetizes Hyperliquid DeFi
activity with sustainable, scalable practices.
-- Quarterly Results: DeFi Monetization activity generated $158
thousand Adjusted Gross Profit(1) in Q2'26, a decline of (36%)
versus $245 thousand in Q1'26.
-- USDH Sunset: As previously disclosed, the sunset of the USDH
stablecoin drove a termination of our HYPE Asset Use Service
$(HAUS)$ agreements with Native Markets and Felix in June 2026,
opening up 800,000 of our HYPE tokens to be redeployed into other
business opportunities.
-- Maintaining Guidance: We reiterated our 2026 Adjusted Gross
Profit(1) and cash flow guidance in June 2026, and we reiterate
that same guidance again today, because the financial impact of
the USDH sunset was immaterial and our strategic response was
swift. This is the nature of operating in a fast-moving ecosystem:
individual products may come and go, but what endures is our
position as an early partner builders come to for support. We
believe the strength of our strategic positioning was demonstrated
within weeks via our two new HAUS agreements deploying 1 million
HYPE tokens as detailed below.
-- HAUS-Skew (HIP-4): In July we announced our HAUS agreement with
Skew Technologies to launch permissionless markets on Hyperliquid
including an institutional listing service. And, with
Hyperliquid's recent HIP-4 announcements in July, we and the Skew
team have decided that HIP-4 outcome markets will be the better
fit for what we are building. This structure deploys 500,000
staked HYPE with a team purpose-built for onboarding new market
categories to Hyperliquid. We expect the markets to go live in the
coming months, with economics that improve upon our prior deployer
arrangement, in addition to long-term equity and token exposure to
Skew. The early metrics are positive, with over 40,000 unique
users signed up to access Skew's private beta as of August 10,
2026.
-- HAUS-Entropy (HIP-3): We are announcing today a HAUS partnership
with Entropy, an upcoming HIP-3 deployer, with 500,000 of our
staked HYPE. Not only does this second deployer provide us with
multiple opportunities to both support and scale unique businesses
on Hyperliquid, but it allows us to converge the building blocks
we are developing alongside our partners in this ecosystem.
-- HAUS-Silhouette (Trading Fee Reduction): In March 2026 we launched
a HAUS agreement on 100,000 HYPE tokens with Silhouette, whereby
Silhouette receives reduced trading fees for their clients and we
receive a portion of those savings as revenue. Silhouette (which
provides shielded trading on Hyperliquid to its clients) completed
its migration into production in Q2'26. We saw monthly volumes
step up from the hundreds of thousands toward over $40 million
cumulative as of August 10, 2026, consistent with the trajectory
we outlined in May. This was driven by Silhouette's support for
RWA spot trading, which we expect to continue to accelerate on
Hyperliquid as more assets become tokenized and move on-chain.
-- HAUS Pipeline: We maintain our pipeline of prospective HAUS
clients and continue to be selective, prioritizing structures that
return durable, volume-linked value to our supported markets. The
value of natively staked HYPE continues to be demonstrated across
these services.
-- On-Chain Credit: In July 2026, we completed our first
institutional credit deal through HyperLend's Aviya platform,
lending $1M USDC against natively staked HYPE at a rate of 8% APY,
far above the overnight rate found in traditional markets. The
HYPE collateral remains in secure custody at Anchorage Digital for
the duration of the loan. We expect the Aviya platform to scale as
demand grows for institutional borrowing and lending against
robust collateral, and we are entitled to a revenue share on a
portion of future activity on Aviya.
5. Ecosystem Rewards: Through our active participation in the Hyperliquid
DeFi ecosystem, the Company positions itself for the receipt of future
potential token airdrops, protocol incentives, and other rewards that may
become available periodically.
-- Ecosystem Rewards generated $90 thousand Adjusted Gross Profit(1)
in Q2'26, versus $150 thousand in Q1'26.
-- We expect the quarter-over-quarter change in Ecosystem
Rewards to be volatile given the unexpected timing of
airdrops, token generation events, and other rewards
activity.
-- The Q2 figure reflects two elements: (1) our receipt and
subsequent sale of the MAX token airdrop and (2) a one-time
grant from Felix due to the sunset of USDH, denominated in
USDC.
-- In November 2025, we received 1.92 million KNTQ tokens in
Kinetiq's airdrop token generation event. We are liquid-staking
our KNTQ with Kinetiq and earning more KNTQ tokens over time. KNTQ
staking yields have recently exceeded 7% annualized, and we have
accrued over 40,000 additional KNTQ tokens in 2026.
-- In March 2026, we received 10 million HPL tokens from HyperLend in
connection with multiple partnership and revenue-sharing
agreements in connection with on-chain credit pools.
-- Silhouette is contractually obligated to award HYPD at least 1% of
future token supply or equity.
-- As part of our HAUS agreement with Skew announced in July 2026,
Skew is contractually obligated to award HYPD at least 5% Skew
equity plus 5% of Skew token supply to the extent there is a
future Skew token generation event.
-- Given our partnerships with other Hyperliquid ecosystem
participants such as Rysk, and given that we are continuing to
accrue additional Kinetiq points, we anticipate additional
ecosystem rewards in 2026.
Q2'26 and Q1'26 Expense Summary Results
-- Operating Expenses Excluding Stock-Based Compensation(5) declined (21%)
quarter-over-quarter to $2.3 million in Q2'26 from $3.0 million in Q1'26.
-- $2.3 million Operating Expenses Excluding Stock-Based
Compensation(5) in Q2'26 represents a (46%) decline versus $4.3
million in Q3'25.
-- As of June 30, 2026, we have substantially wound down all operations
related to our legacy biotech segment.
-- In July 2026, we executed a sale of all our remaining IP associated with
our legacy biotech segment to Arctic Vision in exchange for a release of
indebtedness owed by the Company.
-- From July 2025 through July 2026, as part of our biotech wind-down
negotiation efforts, we have cumulatively released over $2.7 million of
liabilities and indebtedness owed by the Company to its legacy partners.
Q2'26 and Q1'26 Treasury Summary
-- Gross HYPE Tokens(2) increased to 2.04 million in Q2'26 from 1.94 million
in Q1'26.
-- Gross HYPE Holdings(4) increased to $132.6 million in Q2'26 from $71.0
million in Q1'26, as the price of HYPE increased to $65.0 in Q2'26 from
$36.6 in Q1'26.
-- Net Asset Value(9) increased to $134.2 million in Q2'26 from $69.9
million in Q1'26.
-- Treasury Gains (Losses)(6) was $54.8 million in Q2'26 versus $21.5
million in Q1'26.
Q2'26 and Q1'26 Net Income and Adjusted EBITDA(8)
-- Q2'26 Net Income was $31.0 million, a second sequential quarterly record
for the company, versus $8.8 million in Q1'26.
-- Q2'26 Adjusted EBITDA(8) of $53.7 million compares to $19.5 million in
Q1'26.
-- The primary reconciliation of Net Income to Adjusted EBITDA(8)
continues to be driven by our HYPE Liquid Staking Tokens (LSTs),
for which the GAAP carrying value is the low-water-mark price of
HYPE, as detailed further in our GAAP to Non-GAAP reconciliations
section at the end of this release.
-- Q2'26 Net Income per Common Share of $1.01 on a basic basis (14,173,457
weighted average shares) and $0.92 on a diluted basis (17,066,826
weighted average shares) compares to Q1'26 Net Income per Common Share of
$0.30 on a basic basis (10,610,679 weighted average shares) and $0.26 on
a diluted basis (12,686,142 weighted average shares).
-- As of August 10, 2026, there are 15,539,434 outstanding shares of HYPD
common stock.
Q2'26 and Q1'26 Cash Flows Summary
-- Adjusted Net Operating Cash Flow(18) was ($2.1 million) in Q2'26 versus
($2.6 million) in Q1'26.
-- Adjusted Net Investing Cash Flow(17) was ($6.2 million) in Q2'26 versus
($1.5 million) in Q1'26.
-- Net Cash Provided by Financing Activities was $11.0 million in Q2'26
versus $6.6 million in Q1'26. Our public offering in May 2026 generated a
total of $9.3 million net proceeds.
-- Our cash, cash equivalents, and stablecoins(16) totaled $11.8 million as
of Q2'26 versus $9.1 million as of Q1'26.
Conference Call & Webcast
Hyperion DeFi, Inc. will hold its earnings conference call and webcast for the second quarter ended June 30, 2026 on Wednesday, August 12, 2026 at 5:00 p.m. Eastern Time. A slide presentation that includes supplemental financial information and reconciliations of certain non-GAAP measures to their most directly comparable GAAP measures can be accessed through the Company's Investor Relations website at https://ir.hyperiondefi.com/events-and-presentations along with information for the conference call. A webcast of the call will be archived and available through August 26, 2026 at 11:59 p.m. Eastern Time on the Company's website.
Presentation
All growth rates represent quarter-over-quarter comparisons, except as otherwise noted. All amounts in tables are presented in U.S. dollars, rounded to the nearest dollar, except as otherwise noted. As a result, certain amounts and rates may not sum or recalculate using the rounded dollar amounts provided. All numbers in this press release are not audited.
About the Hyperliquid Platform and the HYPE Token
Hyperliquid is a next-generation layer one blockchain optimized for high frequency, transparent trading. The blockchain includes fully on-chain perpetual futures and spot order books, with every order, cancel, trade, and liquidation occurring within 70 millisecond block times. It also hosts the HyperEVM, a general-purpose smart contract platform that supports permissionless decentralized financial applications akin to Ethereum.
HYPE is the native token of Hyperliquid. Staked HYPE provides utility for users via reduced trading fees and increased referral bonuses. As of July 2026, more than 46 million HYPE have been autonomously purchased and sequestered by the blockchain with the trading fees generated on the network's central limit order books.
About Hyperion DeFi, Inc.
Hyperion DeFi, Inc. is the first U.S. publicly listed DeFi company building on Hyperliquid. The Company provides investors with streamlined access to the Hyperliquid ecosystem, one of the fastest growing, highest revenue-generating blockchains in the world. Shareholders benefit from compounding exposure to HYPE, both from its native staking yield and additional revenues generated from its unique on-chain utility.
For more information, please visit Hyperiondefi.com or follow @hyperiondefi on X.
Use of Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures (including on a forward-looking basis) such as Adjusted Gross Profit, Gross HYPE Holdings, Net Asset Value, Operating Expenses Excluding Stock-Based Compensation, Treasury Gains (Losses), Adjusted Other Income (Expense), Adjusted EBITDA, Adjusted Net Investing Cash Flow, and Adjusted Net Operating Cash Flow. These non-GAAP measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to any performance measures derived in accordance with GAAP. Reconciliations of non-GAAP measures to their most directly comparable U.S. Generally Accepted Accounting Principles (GAAP) counterparts are included in the Non-GAAP Reconciliations section of this press release with additional detail in the Footnotes. Hyperion DeFi believes that these non-GAAP measures of financial results (including on a forward-looking basis) provide useful supplemental information to investors about Hyperion DeFi. Hyperion DeFi's management uses non-GAAP measures to evaluate our operating performance, formulate business plans, help better assess our overall liquidity position, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. However, these non-GAAP measures have limitations as analytical tools. Other companies may not use these non-GAAP measures or may use similar measures that are defined in a different manner. Therefore, Hyperion DeFi's non-GAAP measures may not be directly comparable to similarly titled measures of other companies. We also periodically review our non-GAAP financial measures and may revise these measures to reflect changes in our business or otherwise. Additionally, forward-looking non-GAAP financial measures are presented on a non-GAAP basis without reconciliations of such forward-looking non-GAAP measures because the GAAP financial measures are not accessible on a forward-looking basis and reconciling information is not available without unreasonable
effort due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments reflected in our reconciliation of historic non-GAAP financial measures, the amounts of which, based on historical experience, could be material.
Forward Looking Statements; Disclaimer
Except for historical information, all the statements, expectations and assumptions contained in this press release are forward-looking statements. Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements, our future activities or other future events or conditions, including the viability of, and risks associated with, our cryptocurrency treasury strategy, the growth and revenue potential of the Hyperliquid ecosystem and the growth prospects of the Company. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and in some cases are likely to, differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors discussed from time to time in documents which we file with the U.S. Securities and Exchange Commission.
Any forward-looking statements speak only as of the date on which they are made, and except as may be required under applicable securities laws, Hyperion DeFi does not undertake any obligation to update any forward-looking statements.
Certain information contained in this press release relates to or is based on studies, publications, surveys and other data obtained from third-party sources and Hyperion DeFi's own internal estimates and research. While Hyperion DeFi believes these third-party studies, publications, surveys and other data to be reliable as of the date of this press release, it has not independently verified, and makes no representation as to the adequacy, fairness, accuracy or completeness of, any information obtained from third-party sources. In addition, no independent source has evaluated the reasonableness or accuracy of Hyperion DeFi's internal estimates or research and no reliance should be made on any information or statements made in this press release relating to or based on such internal estimates and research. You should conduct your own investigation and analysis of Hyperion DeFi, its business, prospects, results of operations and financial condition. In furnishing this information, Hyperion DeFi does not undertake any obligation to provide you with access to any additional information (including forward-looking information and any projections contained herein) or to update or correct the information.
Hyperion DeFi, Inc. Investor Contact:
Jason Assad
Hyperion DeFi, Inc.
IR@hyperiondefi.com
(678) 570-6791
Hyperion DeFi, Inc.
Condensed Balance Sheets
(unaudited)
June 30, December 31,
2026 2025
------------------- ----------------
(unaudited)
Assets
Current Assets
Cash and cash
equivalents $ 9,637,216 $ 6,310,878
Prepaid expenses
and other current
assets 3,271,661 934,931
------------ ---- ------------
Total Current
Assets 12,908,877 7,245,809
Digital assets 74,119,231 16,345,347
Digital assets
receivable, net -- 6,935,131
Digital intangible
assets 25,721,566 20,591,555
Operating lease
right-of-use asset 207,044 415,998
Other assets 182,200 230,416
------------ ---- ------------
Total Assets $ 113,138,918 $ 51,764,256
============ ==== ============
Liabilities and
Stockholders' Equity
Current Liabilities:
Accounts payable $ 139,114 $ 317,900
Accrued expenses
and other current
liabilities 2,153,114 1,871,106
Operating lease
liabilities -
current portion 417,593 512,007
Notes payable -
current portion,
net 2,798,981 --
------------ ---- ------------
Total Current
Liabilities 5,508,802 2,701,013
Notes payable -
non-current
portion, net 5,639,696 7,796,136
Operating lease
liabilities,
non-current
portion 55,649 206,600
------------ ---- ------------
Total Liabilities 11,204,147 10,703,749
------------ ---- ------------
Commitments and
contingencies (Note
9)
Stockholders' Equity
Preferred stock,
$0.0001 par value,
60,000,000 shares
authorized; Series
A Non-Voting
Convertible
Preferred Stock,
5,435,898 shares
designated;
5,235,897 and
5,435,897 shares
issued and
outstanding as of
June 30, 2026 and
December 31, 2025,
respectively with
a liquidation
preference of
$50,740,000 as of
June 30, 2026 524 544
Common stock,
$0.0001 par value,
600,000,000 shares
authorized;
15,299,832 shares
issued and
outstanding as of
June 30, 2026;
8,762,329 shares
issued and
8,680,005 shares
outstanding as of
December 31, 2025,
respectively 1,531 876
Additional
paid-in-capital 302,765,630 281,937,072
Treasury stock, at
cost, 0 and 82,324
shares as of June
30, 2026 and
December 31, 2025,
respectively -- (253,558)
Accumulated deficit (200,832,914) (240,624,427)
------------ --- ------------
Total
Stockholders'
Equity 101,934,771 41,060,507
------------ ---- ------------
Total Liabilities
and
Stockholders'
Equity $ 113,138,918 $ 51,764,256
============ ==== ============
Hyperion DeFi, Inc.
Condensed Statements of Operations
(unaudited)
For the Three Months Ended For the Six Months Ended
June 30, June 30,
--------------------------- ------------------------------
2026 2025 2026 2025
------------- ------------ ------------- ---------------
Revenue $ 357,693 $ -- $ 601,964 $ 14,720
Cost of revenue -- -- -- (48)
----------- ---------- ----------- -----------
Gross Profit 357,693 -- 601,964 14,672
Operating (Income)
Expenses:
Research and
development 58,492 674,578 345,256 1,347,621
Selling, general
and
administrative 3,918,591 7,678,704 8,412,195 10,051,026
Impairment of
right of use
assets 57,773 -- 57,773 --
Realized gain -
digital assets
and digital
assets
receivable, net (17,859,505) -- (21,483,269) --
Unrealized gain -
digital assets,
net (16,939,634) -- (27,913,613) --
Unrealized loss
-- digital
intangible assets
receivable 367,251 -- -- --
Impairment loss -
digital
intangible
assets 768,857 -- 2,000,525 --
Net gain on
derivative
instruments (112,032) -- (151,433) --
Recovery of credit
losses (909,842) -- (405,331) --
----------- ---------- ----------- -----------
Total Operating
(Income)
Expenses, Net (30,650,049) 8,353,282 (39,137,897) 11,398,647
----------- ---------- ----------- -----------
Income (Loss)
From
Operations 31,007,742 (8,353,282) 39,739,861 (11,383,975)
Other Income
(Expense):
Other income
(expense), net (29,783) 168,840 60,350 172,527
Gain on
extinguishment of
liabilities -- -- -- 89,623
Interest expense (233,760) (528,410) (459,629) (1,109,909)
Interest income 206,764 21,933 450,931 57,282
----------- ---------- ----------- -----------
Total Other
Income
(Expense), Net (56,779) (337,637) 51,652 (790,477)
----------- ---------- ----------- -----------
Net Income (Loss) 30,950,963 (8,690,919) 39,791,513 (12,174,452)
Dividend to
preferred
stockholders (718,478) (97,167) (1,533,775) (97,167)
----------- ---------- ----------- -----------
Net Income (Loss)
Attributable to
Participating
Securities $ 30,232,485 $(8,788,086) $ 38,257,738 $(12,271,619)
Less: income
allocated to
preferred
stockholders (15,892,379) -- (21,378,486) --
----------- ---------- ----------- -----------
Net Income (Loss)
Available to Common
Stockholders -
Basic $ 14,340,105 $(8,788,086) $ 16,879,251 $(12,271,619)
Add: undistributed
earnings
reallocated to
common upon
assumed
exercise/vesting
of dilutive
securities 1,402,996 -- 1,833,467 --
----------- ---------- ----------- -----------
Net Income (Loss)
Available to Common
Stockholders -
Diluted $ 15,743,102 $(8,788,086) $ 18,712,718 $(12,271,619)
=========== ========== =========== ===========
Basic earnings
(loss) per common
share:
Net basic earnings
(loss) per share $ 1.01 $ (2.50) $ 1.36 $ (4.29)
=========== ========== =========== ===========
Diluted earnings
(loss) per common
share:
Net diluted
earnings (loss)
per share $ 0.92 $ (2.50) $ 1.25 $ (4.29)
=========== ========== =========== ===========
Weighted average
shares outstanding
Basic 14,173,457 3,518,906 12,401,910 2,857,596
=========== ========== =========== ===========
Diluted 17,066,826 3,518,906 15,038,798 2,857,596
=========== ========== =========== ===========
Hyperion DeFi, Inc.
Condensed Statements of Stockholders' Equity (Deficit)
(unaudited)
For the Three and Six Months Ended June 30, 2026
----------------------------------------------------------------------------------------------------------------
Additional Total
Preferred Stock Common Stock Paid-In Treasury Stock Accumulated Stockholders'
-------------------- -------------------- --------------------
Shares Amount Shares Amount Capital Shares Amount Deficit Equity
---------- -------- ----------- ------- ------------- -------- ---------- -------------- ---------------
Balance - January 1,
2026 5,435,897 $ 544 8,762,329 $ 876 $281,937,072 82,324 $(253,558) $(240,624,427) $ 41,060,507
Issuance of common
stock in At the
Market offering [1] -- -- 1,859,993 186 6,665,196 -- -- -- 6,665,382
Issuance of common
stock for payment in
kind of preferred
stock dividend -- -- 244,518 25 939,312 -- -- -- 939,337
Issuance of common
stock from the
delivery of vested
restricted stock
units -- -- 55,277 5 (5) -- -- -- --
Shares withheld to
settle employee tax
liability upon
delivery of RSU
equity compensation. -- -- (21,761) (2) 2 -- -- -- --
Issuance of common
stock from conversion
of preferred stock (200,000) (20) 600,000 60 (40) -- -- -- --
Retirement of treasury
shares -- -- (82,324) (8) (253,550) (82,324) 253,558 -- --
Stock-based
compensation:
Amortization of
stock option
awards -- -- -- -- 80,880 -- -- -- 80,880
Amortization of
restricted stock
units -- -- -- -- 1,690,852 -- -- -- 1,690,852
Issuance of common
stock to vendors as
consideration for
service provided -- -- 10,450 1 32,752 -- -- -- 32,753
Preferred stock
dividend ($0.14 per
preferred share
outstanding) -- -- -- -- (815,297) -- -- -- (815,297)
Net income -- -- -- -- -- -- -- 8,840,550 8,840,550
--------- --- ---------- ----- ----------- ------- -------- ------------ -----------
Balance - March 31, 2026 5,235,897 524 11,428,482 1,143 290,277,174 -- -- (231,783,877) 58,494,964
Issuance of common
stock in public
offering [2] -- -- 2,910,027 291 9,327,030 -- -- -- 9,327,321
Issuance of common
stock in At the
Market offering [3] -- -- 492,783 49 1,846,850 -- -- -- 1,846,899
Issuance of common
stock for payment in
kind of preferred
stock dividend -- -- 236,318 24 779,826 -- -- -- 779,850
Issuance of common
stock from the
delivery of vested
restricted stock
units -- -- 308,407 31 (31) -- -- -- --
Shares withheld to
settle employee tax
liability upon
delivery of RSU
equity compensation. -- -- (82,894) (8) (379,090) -- -- -- (379,098)
Stock-based
compensation:
Amortization of
stock option
awards -- -- -- -- 59,852 -- -- -- 59,852
Amortization of
restricted stock
units -- -- -- -- 1,546,884 -- -- -- 1,546,884
Issuance of common
stock to vendors as
consideration for
service provided -- -- 6,709 1 25,613 -- -- -- 25,614
Preferred stock
dividend ($0.14 per
preferred share
outstanding) -- -- -- -- (718,478) -- -- -- (718,478)
Net income -- -- -- -- -- -- -- 30,950,963 30,950,963
--------- --- ---------- ----- ----------- ------- -------- ------------ -----------
Balance - June 30, 2026 5,235,897 $ 524 15,299,832 $1,531 $302,765,630 -- -- $(200,832,914) $101,934,771
========= === ========== ===== =========== ======= ======== ============ ===========
Hyperion DeFi, Inc.
Condensed Statements of Stockholders' Equity (Deficit),
continued
(unaudited)
For the Three and Six Months Ended June 30, 2025
-----------------------------------------------------------------------------------------------------------
Additional Total
Preferred Stock Common Stock Paid-In Treasury Stock Accumulated Stockholders'
------------------- -------------------- ----------------
Equity
Shares Amount Shares Amount Capital Shares Amount Deficit (Deficit)
--------- -------- ---------- -------- ------------- ------ -------- -------------- ---------------
Balance - January 1,
2025 -- $ -- 1,506,369 $ 151 182,213,889 -- -- (195,309,992) (13,095,952)
Issuance of common
stock in At the
Market offering [4] -- -- 1,127,100 113 5,663,153 -- -- -- 5,663,266
Induced exercise of
stock warrants [5] -- -- 197,118 19 922,731 -- -- -- 922,750
Reverse stock split
settlement of
fractional shares -- -- (41) -- (160) -- -- -- (160)
Warrant modification
and additional
warrants-incremental
value [6] -- -- -- -- 1,194,102 -- -- -- 1,194,102
Warrant modification
and additional
warrants-in issuance
costs for inducement
[6] -- -- -- -- (1,194,102) -- -- -- (1,194,102)
Stock-based
compensation -- -- -- -- 279,628 -- -- -- 279,628
Net loss -- -- -- -- -- -- -- (3,483,533) (3,483,533)
--------- ---- --------- ---- ----------- ------ ---- ------------ -----------
Balance - March 31, 2025 -- -- 2,830,546 283 189,079,241 -- -- (198,793,525) (9,714,001)
Issuance of
preferred stock and
warrants in private
placement [7] 5,435,897 544 -- -- 49,365,206 -- -- -- 49,365,750
Issuance of common
stock in At the
Market offering
[8] -- -- 1,323,389 132 2,559,008 -- -- -- 2,559,140
Issuance of common
stock from exercise
of warrants -- -- 252,000 25 1,953,479 -- -- -- 1,953,504
Issuance of common
stock from the
delivery of vested
restricted stock
units -- -- 44,072 4 (4) -- -- -- --
Issuance of common
stock from the
partial conversion
of note payable -- -- 404,820 41 640,295 -- -- -- 640,336
Warrants issued in
consideration for
debt modification -- -- -- -- 858,270 -- -- -- 858,270
Stock-based
compensation -- -- -- -- 483,654 -- -- -- 483,654
Net loss -- -- -- -- -- -- -- (8,690,919) (8,690,919)
Preferred stock
dividend -- -- -- -- (97,167) -- -- -- (97,167)
--------- ---- --------- ---- ----------- ------ ---- ------------ -----------
Balance - June 30, 2025 5,435,897 $ 544 4,854,827 $ 485 $244,841,982 -- $ -- $(207,484,444) $ 37,358,567
========= ==== ========= ==== =========== ====== ==== ============ ===========
____________________________
[1] Includes gross proceeds of $6,981,098 less total
issuance costs of $315,716.
[2] Includes gross proceeds of $10,476,097 less total
issuance costs of $1,148,776.
[3] Includes gross proceeds of $1,973,363 less total
issuance costs of $126,464.
[4] Includes gross proceeds of $5,851,007 less total
issuance costs of $187,741.
[5] Incremental value from the warrant inducement
entered into on January 16, 2025.
[6] Non-cash warrant modification and additional warrants
issuance costs related to the warrant inducement are
shown as a separate line item for clarity.
[7] Includes gross proceeds of $50,000,000 less total
issuance costs of $634,250.
[8] Includes gross proceeds of $2,657,659 less total
issuance costs of $98,519.
Hyperion DeFi, Inc.
Condensed Statements of Cash Flows
(unaudited)
For the Six Months Ended
June 30,
------------------------------
2026 2025
------------- ---------------
Cash Flows From Operating
Activities
Net income (loss) $ 39,791,513 (12,174,452)
Adjustments to reconcile net
income (loss) to net cash and
cash equivalents used in
operating activities:
Stock-based compensation 3,436,835 5,953,282
Change in fair value of shares
issued for accrued dividend 158,544 --
Amortization of debt discount 110,921 585,508
Non-cash lease expense 208,954 151,179
Recovery of credit losses (405,331) --
Gain on extinguishment of
liabilities -- (89,623)
Realized gain - digital assets
and digital assets receivable (21,483,269) --
Unrealized gain - digital
assets, net (27,913,613) --
Net gains on derivative
instruments (151,433) --
Impairment loss - digital
intangible assets 2,000,525 --
Non-cash revenue, net (601,964) --
Non-cash interest income from
digital assets receivable (307,278) --
Non-cash portion of other
income 22,603 --
Paid-in-kind interest expense 169,125 211,520
Changes in operating assets and
liabilities:
Refunded deposit -- (888,000)
Prepaid expenses and other
current assets (1,747,734) (321,270)
Accounts payable (178,786) (1,053,087)
Accrued expenses and other
current liabilities (26,729) 76,963
Lease liabilities (245,365) (341,817)
----------- -----------
Net Cash and Cash Equivalents
Used In Operating Activities (7,162,483) (7,889,797)
----------- -----------
Cash Flows From Investing
Activities
Purchases of property and
equipment -- (22,959)
Purchase of digital assets (9,036,402) (45,500,000)
Sales and dispositions of digital
assets 2,440,000 --
Purchases of USDC (2,518,820) --
Proceeds from sales of USDC 2,000,000 --
----------- -----------
Net Cash and Cash Equivalents
Used In Investing Activities (7,115,222) (45,522,959)
----------- -----------
Cash Flows From Financing
Activities
Proceeds from sale of common
stock in direct offering 10,476,097 --
Proceeds from sale of common stock
in At the Market offering 8,954,461 8,508,666
Proceeds from sale of preferred
stock and warrants in private
placement -- 50,000,000
Proceeds from induced exercise of
stock warrants -- 1,039,206
Proceeds from induced exercise of
stock warrants -- 1,953,504
Payment of private placement
issuance costs -- (634,250)
Payment of issuance costs for
direct offering (1,148,776) --
Payment of issuance costs for At
the Market offering (442,180) (286,260)
Repayments of notes payable (235,559) (1,463,438)
Payment of issuance costs for debt
modification -- (177,228)
Payment of cash issuance costs for
induced exercise of stock
warrants -- (116,456)
Reverse stock split settlement of
fractional shares -- (160)
----------- -----------
Net Cash and Cash Equivalents
Provided By Financing
Activities 17,604,043 58,823,584
----------- -----------
Net Increase in Cash and Cash
Equivalents 3,326,338 5,410,828
Cash and Cash Equivalents -
Beginning of Period 6,310,878 2,121,463
----------- -----------
Cash and Cash Equivalents - End
of Period $ 9,637,216 $ 7,532,291
=========== ===========
Hyperion DeFi, Inc.
Condensed Statements of Cash Flows, continued
(unaudited)
For the Six Months Ended
June 30,
------------------------------
2026 2025
--------------- -------------
Supplemental Disclosure of Cash Flow
Information:
Cash paid during the period for:
Interest $ 179,582 $ --
=========== ==========
Supplemental Disclosure of Non-Cash
Investing and Financing Activities
Modification date carrying value of
extinguished Avenue Loan $ -- $10,262,280
=========== ==========
Modification date fair value of
modified Avenue Loan $ -- $10,172,657
=========== ==========
Exchange of digital intangible
assets for digital intangible
assets receivable $ 18,746,744 $ --
=========== ==========
Exchange of digital intangible
assets receivable for digital
intangible assets $ 19,454,154 $ --
=========== ==========
Digital assets received for digital
assets receivable $ 22,528,501 $ --
=========== ==========
Deposits into Hyperion Rysk Vault $ 1,812,029 $ --
=========== ==========
Redemption from Hyperion Rysk Vault $ 1,854,834 $ --
=========== ==========
Warrant modification and additional
warrants - incremental value $ -- $ 1,194,102
=========== ==========
Prepaid insurance financed by note
payable $ 598,055 $ --
=========== ==========
Common stock issued for accrued
dividends payable $ 1,719,187 $ --
=========== ==========
Accrued dividend payable to
preferred stockholders $ 1,533,775 $ --
=========== ==========
Shares withheld for employee tax
liabilities $ 379,098 $ --
=========== ==========
Treasury shares retired $ 253,558 $ --
=========== ==========
Deposits of digital assets into
liquid staking activities $ 364,962 $ --
=========== ==========
Liability for digital assets
received pursuant to partnership
agreement $ 150,163 $ --
=========== ==========
Common stock issued upon conversion
of preferred stock $ 60 $ --
=========== ==========
Issuance of common stock upon
vesting of restricted stock units $ 36 $ --
=========== ==========
Digital assets acquired in exchange
for USDC $ 3,549,105 $ --
=========== ==========
Digital assets disposed of in
exchange for USDC $ 2,874,699 $ --
=========== ==========
Conversion of USDH to USDC $ 1,926,018 $ --
=========== ==========
Hyperion DeFi Non-GAAP Measures of Financial Performance and Supplemental Disclosures
Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted
Gross Profit(1) (unaudited)
For the Three Months Ended
Sept. 30, Dec. 31, March 31, June 30,
(Figures in $) 2025 2025 2026 2026
Gross Profit 302,506 192,987 244,271 357,693
Add: Accumulated but unrealized
staking yield on LSTs(10) 58,771 172,463 154,806 255,275
Add: Net gains on derivative
instruments 78,109 79,461 39,401 112,032
Add: Treasury gains (losses)
attributable to derivative
activity - - - 351,000
Add: Accumulated but unrealized
yield enhancement activity(15) - - 171,970 (128,614)
Add: Income from airdrops - 285,450 - 18,699
Add: Upfront receipt of HPL tokens
pursuant to partnership
agreements - - 150,163 (33,991)
Add: USDH sunset grant from Felix - - - 70,843
Add: Interest Income from DeFi
Monetization activity - 90,636 198,957 147,098
Adjusted Gross Profit(1) 439,386 820,997 959,568 1,150,035
=================================== ========= ======== ========= =========
Note: See "Footnotes" section for detailed explanations and definitions.
Q2'26 Reconciliation of GAAP HYPE Digital Assets to
Non-GAAP Gross HYPE Holdings(4) (unaudited)
As of June 30, 2026
--------------------------------
Token Token
Value $ Count Price $
HYPE digital assets 74,119,231 1,141,174 64.95
Add:
HiHYPE at Carrying Value 8,828,972 398,277 22.17
kHYPE at Carrying Value 15,897,330 455,434 34.91
kmHYPE at Carrying Value 597,068 28,888 20.67
Unrealized accretion (dilution) expected
upon LST to HYPE reconversion(11) 33,192,611 18,340 N.M.*
Gross HYPE Holdings(4) 132,635,212
============================================ =========== ========= ========
Gross HYPE Tokens(2) 2,042,113 64.95
============================================ =========== ========= ========
Note: See "Footnotes" section for detailed explanations
and definitions.
Memo: Unrealized accretion (dilution)
expected upon LST to HYPE reconversion as
of March 31, 2026 11,373,007
Memo: In-Period Change in unrealized
accretion (dilution) expected upon LST to
HYPE reconversion 21,819,604
*Throughout this release, N.M. is the abbreviation for "Not Meaningful".
Q1'26 Reconciliation of GAAP HYPE Digital Assets to
Non-GAAP Gross HYPE Holdings(4) (unaudited)
As of March 31, 2026
-------------------------------
Token Token
Value $ Count Price $
HYPE digital assets 25,286,164 690,505 36.62
Add:
HYPE digital assets receivable* 11,071,200 302,327 36.62
HYPE digital intangible assets receivable** 9,230,486 250,000 20.66
HiHYPE at Carrying Value 7,785,852 378,277 20.58
kHYPE at Carrying Value 5,693,449 275,434 20.67
kmHYPE at Carrying Value 597,068 28,888 20.67
Unrealized accretion (dilution) expected upon
LST to HYPE reconversion(11) 11,373,007 14,421 N.M.
Gross HYPE Holdings(4) 71,037,344
============================================= ========== ========= ========
Gross HYPE Tokens(2) 1,939,851 36.62
============================================= ========== ========= ========
Note: See "Footnotes" section for detailed explanations
and definitions.
Memo: Unrealized accretion (dilution)
expected upon LST to HYPE reconversion as of
December 31, 2025 3,499,665
Memo: In-Period Change in unrealized
accretion (dilution) expected upon LST to
HYPE reconversion 7,873,342
*Presented gross of $586,774 allowance for credit losses and $108,321 unamortized nonrefundable upfront fee.
**Presented gross of $323,067 allowance for credit losses.
Q4'25 Reconciliation of GAAP HYPE Digital Assets to
Non-GAAP Gross HYPE Holdings(4) (unaudited)
As of December 31, 2025
---------------------------------------------- ------------------------------
Token Token
Value $ Count Price
---------------------------------------------- ----------- --------- ------
HYPE - Digital Assets 16,233,941 638,352 25.43
Add:
----------------------------------------------
HYPE digital assets receivable* 7,647,740 300,725 25.43
HiHYPE at carrying value 8,437,277 398,277 21.18
kHYPE at carrying value 11,369,458 505,434 22.49
kmHYPE at carrying value 649,820 28,888 22.49
Add: Unrealized accretion (dilution) expected
upon future LST to HYPE Token
reconversion(11) 3,499,665 9,410 N.M.
Gross HYPE Holdings(4) 47,837,901
============================================== =========== ========= ======
Gross HYPE Tokens(2) 1,881,086 25.43
============================================== =========== ========= ======
Note: See "Footnotes" section for detailed explanations
and definitions.
Unrealized accretion (dilution) expected upon
LST to HYPE reconversion as of Q3'25 4,912,082
In-Period Change in unrealized accretion
(dilution) expected upon LST to HYPE vs.
Q3'25 (1,412,417)
*Presented gross of $405,331 allowance for credit losses and $307,278 unamortized nonrefundable upfront fee.
Q3'25 Reconciliation of GAAP HYPE Digital Assets to
Non-GAAP Gross HYPE Holdings(4) (unaudited)
As of September 30, 2025
----------------------------------------------- -----------------------------
Token Token
Value $ Count Price
----------------------------------------------- ---------- --------- ------
HYPE digital assets 37,954,590 839,889 45.19
Add: HiHYPE at Carrying Value 34,884,932 877,871 39.74
Add: Unrealized accretion (dilution) expected
upon future LST to HYPE Token
reconversion(11) 4,912,082 2,788 N.M.
Gross HYPE Holdings(4) 77,751,604
=============================================== ========== ========= ======
Gross HYPE Tokens(2) 1,720,549 45.19
=============================================== ========== ========= ======
Note: See "Footnotes" section for detailed explanations
and definitions.
Unrealized accretion (dilution) expected upon
LST to HYPE reconversion as of June 30, 2025* 4,912,082
*The Company did not hold any LSTs on or prior to June 30, 2025. Therefore, as of September 30, 2025, the in-period change in unrealized accretion (dilution) expected upon LST to HYPE Token Reconversion is the same as the absolute figure.
Reconciliation of GAAP Selling, General and Administrative
expense to Non-GAAP Operating Expense Excluding Stock-Based
Compensation(5) (unaudited)
Sept. 30, Dec. 31, March 31, June 30,
(Figures in $) 2025 2025 2026 2026
Selling, general and
administrative expense 2,594,130 4,530,542 4,493,604 3,918,591
Subtract: stock-based
compensation expense 1,347,031 (1,712,361) (1,804,485) (1,632,349)
Add: research and
development expense 373,855 188,954 286,764 58,492
Operating Expense Excluding
Stock-Based
Compensation(5) 4,315,016 3,007,135 2,975,883 2,344,734
============================ ========= =========== =========== ===========
Note: See "Footnotes" section for detailed explanations and definitions.
Supplemental Disclosure of Disaggregated Stock-Based Compensation (unaudited)
For the Three Months Ended
Sept. 30, Dec. 31, March 31, June 30,
(Figures in $) 2025 2025 2026 2026
----------- --------- --------- ---------
Mark-to-Market Adjustment
of Vested but Undelivered
Awards (2,140,000)
Amortization of Unearned
Executive Milestone
Awards 209,648 997,563 997,563 997,563
All Remaining Stock-Based
Compensation 583,321 714,798 806,922 634,786
Total Stock-Based
Compensation (1,347,031) 1,712,361 1,804,485 1,632,349
========================== =========== ========= ========= =========
Reconciliation of GAAP Net Operating Income (Expenses)
to Non-GAAP Treasury Gains (Losses)(6) (unaudited)
For the Three Months Ended
Sept. 30, Dec. 31, March 31, June 30,
(Figures in $) 2025 2025 2026 2026
---------- ------------ ---------- ----------
Net Operating Income
(Expenses) 4,125,685 (39,958,264) 8,487,848 30,650,049
Add Back:
--------------------------
Research and
development expense 373,855 188,954 286,764 58,492
Selling, general and
administrative
expense 2,594,130 4,530,542 4,493,604 3,918,573
Impairment of right of
use assets - - - 57,773
Provision for credit
losses - 405,331 504,511 (909,842)
In-Period Change in
unrealized accretion
(dilution) expected
upon LST to HYPE
reconversion 4,912,082 (1,412,417) 7,873,342 21,819,604
Subtract:
--------------------------
Accumulated but
unrealized staking
yield on LSTs(10) (58,771) (172,463) (154,806) (255,275)
Income from airdrops - (285,450) - (18,699)
Realized gains / losses
from Rysk Vault shares
redemption - - - (42,035)
Net gains on derivative
instruments (78,109) (79,461) (39,401) (112,032)
Treasury losses (gains)
attributable to
derivative activity - - - (351,000)
Treasury Gains (Losses)(6) 11,868,872 (36,783,228) 21,451,862 54,815,626
========================== ========== ============ ========== ==========
Note: See "Footnotes" section for detailed explanations and definitions.
Reconciliation of GAAP Total Other Income (Expense), Net to Non-GAAP Adjusted Other Income (Expense)(7) (unaudited)
For the Three Months Ended
Sept. 30, Dec. 31, March 31, June 30,
(Figures in $) 2025 2025 2026 2026
Total Other Income (Expense), Net 2,197,391 (288) 108,431 (56,779)
Add back:
---------------------------------
Interest expense 223,080 224,799 225,869 233,760
Reduction in life sciences
liabilities(12) (2,407,154) - (225,173) -
Other non-recurring items(13) (55,557) (85,158) 142,415 2,037
Subtract: Interest Income from
DeFi Monetization activities - (90,636) (198,957) (147,098)
Adjusted Other Income
(Expense)(7) (42,240) 48,717 52,585 31,919
================================= =========== ======== ========= =========
Note: See "Footnotes" section for detailed explanations and definitions.
Reconciliation of GAAP Net Income to Non-GAAP Adjusted
EBITDA(8) (unaudited)
For the Three Months Ended
Sept. 30, Dec. 31, March 31, June 30,
(Figures in $) 2025 2025 2026 2026
Net Income (Loss) 6,625,582 (39,765,565) 8,840,550 30,950,983
Add back:
---------------------------
Stock-based compensation (1,347,031) 1,712,361 1,804,485 1,632,349
Interest expense 223,080 224,799 225,869 233,760
Provision for credit
losses - 405,331 504,511 (909,842)
Income Taxes - - - -
Depreciation and
amortization expense - - - -
Impairment of right of
use assets - - - 57,773
Reduction in life
sciences
liabilities(12) (2,407,154) - (225,173) -
Other non-recurring
items(13) (55,557) (85,158) 142,415 2,037
Add:
---------------------------
In-Period Change in
unrealized accretion
(dilution) expected
upon LST to HYPE
reconversion 4,912,082 (1,412,417) 7,873,342 21,819,604
Accumulated but
unrealized yield
enhancement
activity(15) - - 171,970 (128,614)
Realized losses (gains)
from Rysk Vault shares
redemption - - - (42,035)
Upfront receipt of HPL
tokens pursuant to
partnership agreements - - 150,163 (33,991)
USDH sunset grant from
Felix - - - 70,843
Adjusted EBITDA(8) 7,951,003 (38,920,649) 19,488,132 53,652,846
=========================== =========== ============ ========== ==========
Note: See "Footnotes" section for detailed explanations and definitions.
*Does not include Amortization of Operating Lease.
Reconciliation of GAAP HYPE digital assets, as adjusted
to Gross HYPE Holdings(4) , to Non-GAAP Net Asset
Value(9) (unaudited)
Sept. 30, Dec. 31, March 31, June 30,
(Figures in $) 2025 2025 2026 2026
Gross HYPE Holdings(4) 77,751,604 47,837,901 71,037,227 132,635,212
Add: KNTQ & sKNTQ at
Carrying Value - 111,406 193,780 172,196
Add: HPL & sHPL at
Carrying Value - - 149,820 91,000
Add: Hyperion Rysk Vault
Shares at Cost Basis* - - 1,615,075 -
Add: Current Assets 9,085,767 7,245,809 8,803,947 12,908,877
Subtract: Current
Liabilities** (4,037,092) (2,701,013) (4,509,992) (5,601,237)
Subtract: Notes Payable*** (8,254,696) (8,339,366) (7,416,353) (5,979,570)
Net Asset Value(9) 74,545,583 44,154,737 69,873,504 134,226,478
========================== =========== =========== =========== ===========
Note: See "Footnotes" section for detailed explanations and definitions.
*Digital intangible assets representing claims on USDH/USDC held in the Hyperion Rysk Institutional Volatility Income Vault.
**Includes Notes payable - current portion as of March 31, 2026 and June 30, 2026; does not subtract debt discount of $36,974 as of March 31, 2026 and $92,435 as of June 30, 2026.
***Non-current portion; does not subtract debt discount of $598,691 as of September 30, 2025, $543,230 as of December 31, 2025, $450,796 as of March 31, 2026, or $339,874 as of June 30, 2026.
Reconciliation of GAAP Net Cash and Cash Equivalents Used in Investing Activities to Adjusted Net Investing Cash Flow((1) (7) (unaudited)
For the Three Months Ended
Sept. 30, Dec. 31, March 31, June 30,
(Figures in $) 2025 2025 2026 2026
Net Cash and Cash
Equivalents Used in
Investing Activities (20,112,041) (6,319,039) (1,472,835) (5,642,387)
Add: Net Impact of
Non-Cash Digital Asset
Acquisitions and
Dispositions* - - - (523,285)
-------------------------
Adjusted Net Investing
Cash Flow(17) (20,112,041) (6,319,039) (1,472,835) (6,165,672)
========================= ============ =========== =========== ===========
*Reflects the net investing cash flow impact of digital asset acquisitions and dispositions of and by non-cash current assets, including USDC and USDH stablecoins.
Note: See "Footnotes" section for detailed explanations and definitions.
Reconciliation of GAAP Net Cash and Cash Equivalents Used in Operating Activities to Adjusted Net Operating Cash Flow((1) (8) () (unaudited)
For the Three Months Ended
Sept. 30, Dec. 31, March 31, June 30,
(Figures in $) 2025 2025 2026 2026
Net Cash and Cash
Equivalents Used in
Operating Activities (2,822,819) (4,190,147) (4,064,063) (3,098,419)
Subtract: Net Impact of
Non-Cash Digital Asset
Acquisitions and
Dispositions* - - - 523,285
--------------------------
Add: Change in Non-GAAP
Cash Equivalents** - 214,012 1,456,719 450,752
--------------------------
Adjusted Net Operating
Cash Flow(18) (2,822,819) (3,976,135) (2,607,344) (2,124,382)
========================== =========== =========== =========== ===========
*Reflects the net investing cash flow impact of digital asset acquisitions and dispositions of and by non-cash current assets, including USDC and USDH stablecoins.
**Reflects quarterly variance in assets the Company considers to be economically equivalent, but not functionally equivalent, to cash (driven by a limited ability to redeem into US Dollars one-for-one), but not reflected in quarterly GAAP "cash and cash equivalents", including from time-to-time USDC and USDH Stablecoin as well as deposits and redemptions from the Hyperion Rysk Vault.
Note: See "Footnotes" section for detailed explanations and definitions.
Footnotes
1. "Adjusted Gross Profit" is a non-GAAP measure. Adjusted Gross Profit is
defined as all in-period gross profit generated by the Company's
operations excluding gains and losses on its digital asset treasury. Such
operating activities include staking yield, validator operations, yield
enhancement activity, DeFi monetization partnerships, ecosystem rewards,
and (prior to 2026) life sciences operations. It is reconciled to the
GAAP measure "Gross Profit" by adding (i) accumulated but unrealized
staking yield on LSTs, (ii) Net gains on derivative instruments, (iii)
the portion of treasury gains (losses) attributable to derivative
activity, (iv) accumulated but unrealized yield enhancement activity as
further described in Footnote 15, (v) income from airdrops, (vi) the
impact of upfront receipt and recognition of Company's HPL tokens
pursuant to its partnership agreements with HyperLend, (vii) the impact
of a one-time grant from the Felix Foundation ("Felix") in connection
with the USDH stablecoin sunset (committed in June 2026 and received in
July 2026), and (viii) the portion of GAAP "Interest Income" generated
from digital assets receivable. We believe "Adjusted Gross Profit" is a
helpful financial measure to our management and investors as it aims to
capture all in-period gross profit generated by our active operational
strategies without the impact of (i) the temporary GAAP earnings
volatility of HYPE to LST conversion and LST to HYPE reconversion, (ii)
the temporary GAAP earnings volatility of depositing and redeeming
USDH/USDC versus Hyperion Rysk Vault Shares and delays in recognition of
upfront received premium on expired sold put and call options on the
price of HYPE, (iii) the over-time GAAP recognition of the Company's
receipt of HPL tokens, (iv) the timing delay between commitment and
receipt of a grant from Felix, (v) dispersed GAAP presentment of our
operational strategies across various Statements of Operations sections,
or (iv) the impacts of gains and losses on our digital asset treasury. We
believe Adjusted Gross Profit is a critical metric to quantify and
compare our core operational activities between periods. In the Company's
earnings release and earnings supplement for three months ended September
30, 2025 and December 31, 2025, we previously reconciled Non-GAAP
"Adjusted Gross Profit" to GAAP "Revenue". Given changes in GAAP
presentment related to staking and validating activities, we believe for
the three months ended March 31 and June 30, 2026, the closest comparable
GAAP metric to Adjusted Gross Profit is Gross Profit.
2. The following are unaudited supplemental operating disclosures: Gross
HYPE Tokens, the number of HYPE tokens staked at the Kinetiq x Hyperion
Validator, Validator Commissions in HYPE, Staking Yield in HYPE (which
includes accrued staking rewards on LSTs), and HYPE Earned in Staking &
Validating (which includes accrued staking rewards on LSTs).
3. Calculated as the sum of the in-period Non-GAAP Adjusted Gross Profit
components of (a) Validator Commissions plus (b) Staking Yield (such
figures being expressed in-period in US Dollars), divided by the sum of
(a) Validator Commissions in HYPE plus (b) Staking Yield in HYPE.
4. "Gross HYPE Holdings" is a non-GAAP measure. Gross HYPE Holdings is
defined as the gross market value of the Company's HYPE assuming (a) all
temporary HYPE token use agreements are exited, (b) all collateralized
OTC HYPE derivatives are exited (and such LST collateral returned to the
Company), and (c) all LSTs are converted back to HYPE tokens as of the
end of each respective reporting quarter. It is reconciled to the GAAP
measure "HYPE digital assets" by adding (i) HYPE digital assets
receivable (without subtracting allowance for credit loss or unamortized
nonrefundable upfront fees), (ii) HYPE digital intangible assets
receivable (without subtracting allowance for credit loss), (iii) HYPE
LSTs at carrying value (including without limitation HiHYPE, kHYPE, and
kmHYPE) and (iv) the unrealized accretion (dilution) expected upon LST to
HYPE reconversion as of the end of each respective reporting quarter. We
believe Gross HYPE Holdings is a helpful non-GAAP financial measure to
our management and investors because it eliminates the temporary HYPE
value impacts caused by our DeFi Monetization and Yield Enhancement token
movements as well as the conversion and reconversion between HYPE tokens
and LSTs, which (a) causes staking yield on our LSTs not to be recognized
in-period in accordance with GAAP and (b) does not recognize upward
mark-to-market movements in underlying HYPE tokens given LSTs are carried
at the lower of cost basis or impaired value. As such, it provides useful
information about our balance sheet, allows for greater transparency with
respect to important metrics used by our management for financial, risk
management and operational decision-making, and provides an additional
tool for investors to understand and compare our operating results across
reporting periods.
5. "Operating Expenses Excluding Stock-Based Compensation" is a non-GAAP
measure. Operating Expenses Excluding Stock-Based Compensation is defined
as the Company's operational expenses in-period excluding treasury value
movements, stock-based compensation, and impairment of right of use
assets. It is reconciled to the GAAP measure "Selling, general and
administrative expense" by (i) subtracting stock-based compensation
expense and (ii) adding Research and development expense. Operating
Expenses Excluding Stock-Based Compensation provides a metric of total
operating expenditures in-period without the impact of treasury value
movements, stock-based compensation, or impairment of right of use assets,
thereby creating a helpful metric for operational expense comparisons
between different periods for our management and investors.
6. "Treasury Gains (Losses)" is a non-GAAP measure. Treasury Gains (Losses)
is defined as the gross value change in the company's digital asset
treasury portfolio each period, without accounting for temporary GAAP
impacts due to HYPE to LST conversion (or LST to HYPE reconversion) or
income driven by airdrops or yield enhancement activity. It is reconciled
to the GAAP measure "Net Operating Income (Expenses)" by (a) adding (i)
research and development expense, (ii) selling, general, and
administrative expense, (iii) impairment of right of use assets, (iv)
provision for credit losses, and (v) the in-period change in unrealized
accretion (dilution) expected upon LST to HYPE reconversion, and (b)
subtracting (i) accumulated but unrealized staking yield on LSTs, (ii)
income from airdrops, (iii) realized gains and losses from Rysk Vault
shares redemption, (iv) net gains on derivative instruments, and (v)
treasury value changes attributable to derivative activity (which are
already captured in the Non-GAAP metric "Adjusted Gross Profit").
Following these adjustments, Treasury Gains (Losses) is a singular metric
that can present treasury value changes in isolation, which we believe is
a helpful metric for management and investors given our large digital
asset treasury position and the volatile nature of our digital assets.
7. "Adjusted Other Income (Expense)" is a non-GAAP measure. Adjusted Other
Income (Expense) reflects management's view of recurring activities
outside of core operating income and operating expenses. It is reconciled
to the GAAP measure "Total Other Income (Expense), Net" by (a) adding
back (i) interest expense, (ii) non-recurring gains from reductions in
life sciences liabilities, and (iii) other non-recurring items which we
do not consider material in nature, and (b) subtracting the portion of
GAAP "Interest Income" generated from digital assets receivable. The
items added back to Adjusted Other Income (Expense) are excluded because
they are non-cash in nature, or because the amount and timing of these
items are unpredictable, are not driven by core results of operations,
and render comparisons with prior periods and competitors less
meaningful. The item subtracted from Adjusted Other Income (Expense) is
already captured in the Non-GAAP metric "Adjusted Gross Profit", as
further described in Footnote 1. We believe Adjusted Other Income
(Expense) provides a helpful view to management and investors regarding
recurring and ongoing income and expense items outside of core operating
income and expenses, presented in a way to compare these elements over
time.
8. "Adjusted EBITDA" is a non-GAAP measure. Adjusted EBITDA is meant to
reflect management's view of recurring business activities and a more
comparable view of the mark-to-market impacts on our digital asset
treasury holdings in-period. It is reconciled to the GAAP measure "Net
Income (Loss)" by removing (i) stock-based compensation, (ii) interest
expense, (iii) provision for credit losses, (iv) income taxes, (v)
depreciation and amortization expense (excluding amortization of
operating lease), (vi) impairment of right of use assets, (vii)
non-recurring gains from reductions in life sciences liabilities, and
(viii) other non-recurring items which we do not consider material in
nature; and, it adds in (i) the in-period change in unrealized accretion
(dilution) expected upon LST to HYPE reconversion, (ii) accumulated but
unrealized yield enhancement activity as further described in Footnote
15, (iii) realized gains and losses from Rysk Vault shares redemption,
(iv) the impact of upfront receipt and recognition of Company's HPL
tokens pursuant to its partnership agreements with HyperLend, and (v) the
impact of a one-time grant from Felix in connection with the USDH
stablecoin sunset (committed in June 2026 and received in July 2026). The
items excluded from our Adjusted EBITDA are excluded because they are
non-cash in nature, or because the amount and timing of these items are
unpredictable, are not driven by core results of operations, and render
comparisons with prior periods and competitors less meaningful. The items
added to Adjusted EBITDA are included to give a more complete picture of
our in-period operations and mark-to-market impacts on our digital assets,
disregarding (i) the temporary GAAP earnings volatility of HYPE to LST
conversion and LST to HYPE reconversion, (ii) the temporary GAAP earnings
volatility of depositing and redeeming USDH/USDC versus Hyperion Rysk
Vault Shares and delays in recognition of upfront received premium on
expired sold HYPE put and call options, (iii) the over-time GAAP
recognition of the Company's receipt of HPL tokens, and (iv) the timing
delay between commitment and receipt of a grant from Felix. Adjusted
EBITDA is used by management, in addition to GAAP financial measures, to
understand and compare our operating results across accounting periods,
for risk management and operational decision-making purposes. This
non-GAAP measure provides investors with additional information in
evaluating the Company's operating performance.
9. "Net Asset Value" is a non-GAAP measure. Net Asset Value is defined as
the estimated market value of our digital assets less net outstanding
debt. It is reconciled to the GAAP measure "HYPE digital assets" as
adjusted to "Gross HYPE Holdings" (described more fully in Footnote 4) by
(i) adding KNTQ digital assets and sKNTQ digital intangible assets at
carrying value, (ii) adding HPL digital assets and sHPL digital
intangible assets at carrying value, (iii) adding Hyperion Rysk Vault
Shares at cost basis, (iv) adding Current Assets, (v) subtracting Current
Liabilities (including current portion of Notes Payable, without
subtracting corresponding debt discounts or any unamortized issuance
expenses), and (vi) subtracting Notes Payable (Non-current portion,
without subtracting corresponding debt discounts or any unamortized
issuance expenses). We believe Net Asset Value is a helpful non-GAAP
financial measure to our management and investors because it provides a
more complete picture of our net assets. It does not include other
non-current assets or non-current liabilities beyond the aforementioned
items. The Company believes Net Asset Value provides useful information
about our balance sheet and financial performance, enhances the overall
understanding of our past performance and future prospects, allows for
greater transparency with respect to important metrics used by our
management for financial, risk management and operational decision-making,
and provides an additional tool for investors to use to understand and
compare our operating results across accounting periods.
10. Represents in-period accrued staking yield on HYPE LSTs. Staking yield on
LSTs is not recognized in-period in accordance with GAAP; instead, LST
staking yield may be recognized as a realized gain upon future
reconversion from LSTs back into HYPE.
11. Represents the estimated future financial implications if all
company-owned LSTs were reconverted to HYPE at the end of each respective
period. Encapsulates both the temporary GAAP valuation methodology
differences between LSTs and HYPE plus the realization of previously
accrued but unrecognized staking yield on LSTs.
12. In the three months ended September 30, 2025, Gain on extinguishment of
liability and a reduction in accrued liability within other income was
approximately $2.2 million and $0.2 million respectively, combined
totaling $2.4 million. In the three months ended March 31, 2026, gain on
extinguishment of liabilities within Other income (expense), net totaled
$0.2 million.
13. In the reconciliation of "Total Other Income (Expense), Net" to "Adjusted
Other Income (Expense)", as well as in the reconciliation of "Net Income
(Loss)" to "Adjusted EBITDA", other non-recurring items include (a) gains
and losses on sales and disposals of life sciences equipment and
furniture, (b) release of reserves held against potential returns of
company-sold items, (c) a one-time realized payment in connection with a
terminated LOI, and (d) gains and losses due to valuation differences in
the time between contractual and actual delivery dates on certain
company-paid expenses denominated in HYPE and in Company equity.
14. Estimated and unaudited figures as of June 30, 2026.
15. Includes all net cash, cash equivalents, and USDC/USDH premiums received
but unrealized on expired sold HYPE puts and calls, including within the
Hyperion Rysk Vault, as well as third-party fees on yield enhancement
activities (such third-party fees being included in DeFi Monetization
within Non-GAAP Adjusted Gross Profit).
16. Includes assets the Company considers to be economically equivalent, but
not functionally equivalent, to cash, such as USDC and USDH Stablecoin as
well as deposits and redemptions from the Hyperion Rysk Vault.
17. "Adjusted Net Investing Cash Flow" is a non-GAAP measure. Adjusted Net
Investing Cash Flow is defined as the estimated total net cash (including
non-GAAP cash equivalents) generated from / (used for) acquisitions and
dispositions of assets for investing purposes. It is reconciled to the
GAAP measure "Net Cash and Cash Equivalents Used in Investing Activities"
by adding the net impact of non-cash digital asset acquisitions and
dispositions. We believe Adjusted Net Investing Cash Flow is a helpful
non-GAAP financial measure to our management and investors because it
removes the in-period cash flow volatility which can be caused by
purchases and sales of and by non-cash current assets, including USDC and
USDH stablecoins. The Company believes Net Asset Value provides useful
Comments