David Schamis: HYPE Is The Best Asset In The World (Bull Thesis)

**Robbie** (0:00)
All righty, guys, we are back here in the Tokenization Tower with David Schamis, CEO of Hyperliquid Strategies, following a huge update from them today, following a Knicks win. David, what a game.

**David Schamis** (0:11)
It was a hell of a game, there's no doubt. I wish I could say I didn't fall asleep, but I fell asleep.

**Robbie** (0:17)
Man, you guys add, you guys had a huge announcement today, bringing the shares of PERE hype holdings, 26.2 million total hype added, 2.5 million hype tokens last week, getting up to about 2.5% of the suppliers. So 210 million share count, you issued 22 million new shares last week, 199 million in cash. So you added $50 million in cash while also buying $150 million of hype last week. Like your average entry is about that.
I've got it on 31 here, but I think last year it was closer to 39

**David Schamis** (0:49)
Yeah, it's come up. It's definitely come up. Yeah.

**Robbie** (0:52)
Yeah.

**David Schamis** (0:52)
I'd love to be able to buy in the 20s, like I was in January, but I can't be doing that now.

**Robbie** (0:56)
Yeah.

**David Schamis** (0:57)
So yeah, look, we've had a nice MNav for a while. And generally speaking, when Hype's moving in the right direction, which it had up until a week ago or so, we're able to use that MNav to issue stock and just run the playbook. Like it's not complicated. We run the DAT playbook. We try our best not to pretend to market time, because when you try to do that, you get it wrong or you get it right because we're all humans. So we try to be as disciplined as possible.
And it's basically been working. Now, obviously, as you said, our average price overall has gone up. That's okay. That's supposed to happen.
And we're a bigger and bigger percentage of the total, which feels good. I think we're 26 or something million tokens right now. And the circulating supply is 200 or so million. So we're actually about 10 percent of the circulating supply, a little more. So that feels really good to us. And as far as I'm concerned, when you look at our MNav, on one hand, we're at that sort of decent level, which is pretty volatile. So there have been points where it's higher or lower. Last I checked, like before I left the office, when you add back to DTL, we're still hovering around one or a little bit slightly above one. So like as an investor, it's pretty easy to invest in this if you want to get hype exposure, because it's not a ridiculous price you're paying.

**Robbie** (2:18)
Yeah, I've got it at 1.12x MNAV as of live on the HLECO site.

**David Schamis** (2:25)
I think that is what we're deducting the deterred tax liability. I think if you add it back, I don't know, I don't have it in front of me, but it's probably 1.02 or something.

**Robbie** (2:35)
Got it.

**David Schamis** (2:36)
And we only pay that liability if we ever sell tokens. If we never sell a token, we never pay that tax.

**Andy** (2:44)
I tell you, you guys aren't planning on selling any tokens.

**David Schamis** (2:48)
We are certainly not planning on selling any tokens. We have, as per this announcement, close to $200 million of cash on our balance sheets. On the other hand, I want to be really clear. I'm not Michael Saylor, I'm not a zealot.
Our job in the end is to create as much shareholder value for our shareholder as possible. And if the circumstance came where we needed to sell tokens to do that, we would do that.
We're not religious zealots. We're corporate finance geeks, and I'm proud of that. I was at a dinner two weeks ago. I'm not going to mention any names. I was at a dinner two weeks ago. It was dinner about PERE and HYPE. And there was probably, I don't know, eight or ten people in the room. And I said what I just said to you guys. And one guy was like, I'm out of here. And literally, in the appetizer course, he gets up and leaves. I'm like, where are you going? He's like, I would never invest in anyone that would ever sell a token. I'm like, OK, it's fine, no problem.
I said, there are plenty of crypto zealots out there that you can find who will be happy to take your money. But we're super long and super bullish hype, but we're not religious zealots.

**Andy** (4:00)
Anyway, I didn't mean to go off track, but it's a helpful story to kind of paint the picture that there are zealots out there, like you said.