Hyperliquid Strategies Increases Equity Financing Limit to $2.5 Billion (Additional Submission to SEC)

Hyperliquid Strategies Expands Funding Limit with Chardan Contract Amendment

NASDAQ-listed Hyperliquid Strategies has amended its purchase agreement for a committed equity financing facility (ChEF) with investment bank Chardan Capital Markets, increasing the funding limit from $1 billion to $2.5 billion.

This was revealed in a Form 8-K submitted to the SEC (U.S. Securities and Exchange Commission), which establishes an additional funding limit of $1.5 billion (approximately ¥236.6 billion) for the company.

This framework is a discretionary equity line, allowing the company to issue and sell shares to Chardan based on its instructions, which will then circulate in the public market. The $2.5 billion (approximately ¥394.33 billion) is the maximum limit available for funding and does not obligate immediate full funding or issuance.

Significant Accumulation of HYPE as Financial Asset

The company has utilized this facility to issue and sell approximately 76.06 million PURR shares, raising about $646.6 million (approximately ¥102 billion, averaging about $8.70 per share). These funds have been allocated for share buybacks and the acquisition of its native token, HYPE.

The amount of HYPE held has significantly expanded from about 12.5 million tokens at the time of previous corporate merger approvals to approximately 29.3 million tokens recently (with an average acquisition price of $46.77 for an additional 16.5 million tokens).

Shareholder Protection Clause and $12.02 Stock Price Line

The amended clause includes a dilution suppression provision that activates once the cumulative sale amount exceeds $1 billion. After reaching a total sale amount of $1 billion, the number of shares that can be issued below $12.02 per share is limited to 19.99% (42,641,847 shares) of the total outstanding shares, and any issuance beyond this requires approval from NASDAQ shareholders.

On September 1, PURR shares ended trading at $11.36 with volume, remaining below the benchmark price of $12.02.

Full-scale Expansion into the U.S. Market and Positive Ecosystem Developments

There have been multiple developments in the business environment surrounding Hyperliquid. There is growing interest from the U.S. administration, and following comments from Trump regarding regulatory compliance in collaboration with the CFTC (Commodity Futures Trading Commission), token prices and stock prices surged temporarily. Discussions are also ongoing for the introduction of perpetual futures for cryptocurrencies in the U.S. market through Bitnomial.

Additionally, on the protocol side, the operation of the HYPE buyback engine "AQAv2" utilizing USDC reserve yields, the adoption of HYPE in major cryptocurrency index ETFs by Hashdex, and the submission of registration documents for a HYPE ETF with staking features by Grayscale are all contributing factors supporting the financial foundation and market demand.

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