My Large Macro/Crypto Bet

The most asymmetric opportunity in markets right now

My Biggest Macro/Crypto Bet

When I look at the trajectory of the Hyperliquid ecosystem, the HYPE token stands out as one of the few assets in the digital-asset landscape where usage, revenue generation, and on-chain activity are compounding at the same time. Hyperliquid has moved beyond the phase of theoretical adoption. It is now processing billions in daily trading volume, attracting some of the deepest derivatives liquidity in the space, and consistently ranking among the highest-revenue blockchains. That combination is rare in crypto, and it is even rarer when the underlying token is still early in its institutional discovery process.

This is exactly why the Hyperliquid Strategies structure was built: to establish a single, publicly listed treasury vehicle designed to hold, accumulate, and manage HYPE at scale. Institutions cannot access HYPE directly with the same ease and compliance infrastructure that they access public equities. PURR exists to solve that problem. It provides a regulated wrapper, audited financials, a defined governance structure, and the capital-markets tools needed to convert equity demand into HYPE accumulation. In other words, it is the bridge between the traditional capital pools on Nasdaq and one of the fastest-growing ecosystems in digital finance.

I view this treasury as the foundational on-ramp for institutional participation in the Hyperliquid economy. As HYPE liquidity deepens, on-chain activity increases, and the exchange continues expanding globally, PURR is positioned to become the largest concentrated holder of HYPE accessible to pension funds, allocators, RIAs, and public-market investors. This was the intention from the outset: to create a scalable institutional vehicle that captures the long-term appreciation of HYPE while maintaining the transparency and governance standards required for adoption at size. In many ways, this moment resembles the earliest phase of MicroStrategy’s transition into a Bitcoin treasury company, when public equity became the only compliant channel for institutions to gain exposure to a rapidly emerging digital asset. PURR serves that same role for HYPE.

Investment Thesis: Hyperliquid Strategies (PURR)

Hyperliquid Strategies (PURR) is a newly listed digital-asset treasury vehicle created through the merger of Sonnet BioTherapeutics and Rorschach I. As disclosed in the SEC filings, the combined entity now holds approximately $299.9 million in cash and 12.5 million HYPE tokens, establishing a starting treasury value of roughly $666 million at current HYPE prices. The strategic intent is clear: PURR exists to give public-market investors direct exposure to the Hyperliquid blockchain through a professionally governed, publicly traded structure.

Progression of the Idea

The merger transformed a legacy biotech company into a crypto-treasury vehicle backed by institutional sponsors and a high-profile board. PURR now operates as a pure-play holder of HYPE, with additional staking and ecosystem yield potential as Hyperliquid expands. The company also controls capital-market tools including a $30 million buyback authorization and a shelf to issue up to 160 million new shares to acquire additional HYPE when advantageous. The value of PURR stock is therefore tied directly to (1) the value of its HYPE holdings, (2) its cash balance, and (3) how effectively management uses issuance and buybacks to grow NAV per share.

Fair Value Model

SEC filings confirm the following structure at closing:

• Cash: $299.9 million

• HYPE tokens: 12.5 million

• Basic shares outstanding: 127.0 million

• Fully diluted share equivalents: up to 183.8 million (preferred + warrants)

Using current HYPE pricing, treasury assets total roughly $666 million.
This implies:

• NAV per basic share: ≈ $5.25

• NAV per fully diluted share: ≈ $3.63

With PURR currently trading around $3.60–$3.70, the market is offering:

• A 30 percent discount to basic NAV, and

• A valuation roughly equal to fully diluted NAV.

This means subscribers are effectively buying HYPE plus cash below liquid asset value, so long as future dilution is disciplined and accretive.

Risk–Reward Profile

The upside stems from three forces:

1. NAV accretion if HYPE appreciates, with treasury value rising dollar-for-dollar.

2. Potential re-rating toward or above NAV, similar to other publicly traded digital-asset holding companies.

3. Optionality from staking yield, ecosystem expansion, and the ability to use equity capital to acquire additional HYPE during periods of strength.

The risks are equally clear:

• Single-asset exposure: PURR is effectively a leveraged bet on HYPE.

• Dilution risk: The $1 billion issuance facility can grow NAV or destroy it depending on timing and discipline.

• Regulatory uncertainty: Changes in US policy around token treasuries or staking could materially impact operations.

• Execution risk: Governance quality must remain high, especially around capital allocation.

Bottom Line

PURR offers a clean, transparent way to gain exposure to Hyperliquid while currently trading at a material discount to its treasury value. The thesis works if management executes responsibly and if HYPE continues to scale as one of the fastest-growing decentralized trading ecosystems. For now, the stock represents a mispriced asset, where investors are paying less than the value of the cash and tokens already on the balance sheet, with significant upside optionality if the Hyperliquid ecosystem continues to accelerate.

I am bullish PURR and view it as a call option on the HYPE token.

The information on this website/Substack is for information purposes only. It is believed to be reliable, but Capital Flows does not warrant its completeness or accuracy. The information on the website/Substack is not intended as an offer or solicitation for the purchase of stock or any financial instrument. The information and materials contained in these pages and the terms, conditions and descriptions that appear, are subject to change without notice. Unauthorized use of Capital Flows websites and systems including but not limited to data scraping, unauthorized entry into Capital Flows systems, misuse of passwords, or misuse of any information posted on a site is strictly prohibited. Your eligibility for particular services is subject to final determination by Capital Flows and/or its affiliates. Investment services are not bank deposits or insured by the FDIC or other entity and are subject to investment risks, including possible loss of principal amount invested. Your use of any information which is proprietary to Capital Flows or a third-party information provider shall only be used on individual devices without any right to redistribute, upload, export, copy, or otherwise transfer the information to any centralized interdepartmental or shared device, directory, database or other repository nor to otherwise make it available to any other entity/person/third party, without the prior written consent of Capital Flows.