Hyperion DeFi Issues Letter to Shareholders

Rhea-AI Summary

Hyperion DeFi (NASDAQ: HYPD) issued a letter from CEO Hyunsu Jung outlining the company’s 2025 transformation and 2026 focus on the Hyperliquid ecosystem. Key actions in 2025 include a $50 million PIPE, launching the Kinetiq x Hyperion validator and HiHYPE liquid staking token, a HAUS trading agreement with Credo, appointment of CFO David Knox, a Felix partnership allocating 500,000 HYPE for a HIP-3 exchange, a 300,000 HYPE allocation with Native Markets, and record Q3 2025 net income of $6.6 million. The letter highlights Hyperliquid protocol dynamics, token burns removing ~13% of supply in 2025, and strategic priorities for token deployment and revenue diversification in 2026.

Positive

• Completed a $50 million PIPE and rapid deployment
• Record Q3 2025 net income of $6.6 million
• Allocated 500,000 HYPE to HIP-3 exchange via Felix
• Allocated 300,000 HYPE to Native Markets USDH incentives
• Established Kinetiq x Hyperion validator to earn staking rewards
• Management purchased 189,204 HYPD shares in December 2025

Negative

• Concentration risk from holding significant HYPE treasury position
• Revenue exposure linked to Hyperliquid ecosystem health and adoption

News Market Reaction

+5.15%

1 alert

+5.15% News Effect

+$1M Valuation Impact

$28M Market Cap

1.1x Rel. Volume

On the day this news was published, HYPD gained 5.15%, reflecting a notable positive market reaction. This price movement added approximately $1M to the company's valuation, bringing the market cap to $28M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

PIPE financing: $50 million Record net income: $6.6 million Validator launch timing: 8 days +5 more

8 metrics

PIPE financing $50 million PIPE completed before establishing Kinetiq x Hyperion validator

Record net income $6.6 million Third quarter 2025, most in company’s 10+ year history

Validator launch timing 8 days Time after $50M PIPE to establish Kinetiq x Hyperion validator

Felix HIP-3 allocation 500,000 HYPE To support HIP-3 exchange trading equities and commodities 24/7

Native Markets allocation 300,000 HYPE To support USDH “Aligned Quote Asset” stablecoin incentive

HYPE supply burned 13% of circulating supply Removed by Hyperliquid buyback-and-burn by end of 2025

HYPE fixed supply 1 billion tokens Total fixed HYPE token supply referenced in shareholder letter

Insider share purchases 189,204 HYPD shares Combined management and board purchases in December 2025

Market Reality Check

Price: $3.32 Vol: Volume 186,310 versus 20-...

normal vol

$3.32 Last Close

Volume Volume 186,310 versus 20-day average 266,840 (relative volume 0.70) shows interest below recent norms ahead of this letter. normal

Technical Shares at $3.30 are trading below the 200-day MA of $7.24 and sit 79.82% under the 52-week high.

Peers on Argus

HYPD was down 4.35% while biotech peers showed mixed moves: declines in NRXP (-5...

HYPD was down 4.35% while biotech peers showed mixed moves: declines in NRXP (-5.53%) and PRLD (-5.40%), gains in MGX (+0.56%) and VANI (+2.31%), and CRTX flat. The setup points to stock-specific dynamics rather than a unified sector trend.

Historical Context

5 past events · Latest: Jan 05 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 05	Leadership change	Positive	+10.6%	CEO appointment and senior legal leadership to drive 2026 priorities.
Dec 04	Crypto partnerships	Positive	+10.0%	Kinetiq airdrop, Native Markets partnership, and added HYPE treasury.
Nov 13	Earnings results	Positive	-7.8%	Record Q3 net income and detailed HYPE asset disclosures.
Nov 03	Earnings call setup	Neutral	-8.6%	Scheduling and access details for upcoming Q3 earnings call.
Oct 29	DeFi partnership	Positive	-11.9%	Felix HIP‑3 HAUS agreement using 500,000 HYPE for new markets.

Pattern Detected

Crypto-focused and partnership/treasury announcements often produced double‑digit moves, but strong operational or earnings updates have sometimes seen negative next‑day reactions, indicating inconsistent alignment between positive news flow and price.

Recent Company History

Over the past six months, HYPD has executed a rapid pivot into Hyperliquid-centric DeFi. Key steps included sizeable HYPE treasury builds, a first HAUS agreement with Credo, and a HIP‑3 partnership with Felix. Q3 2025 delivered record net income of $6.6 million, while leadership changes culminated in appointing Hyunsu Jung as CEO effective Jan 5, 2026. Today’s shareholder letter reiterates this 2025 foundation and frames 2026 around deeper integration with Hyperliquid and on‑chain growth initiatives.

Regulatory & Risk Context

Active S-3 Shelf · $1,000,000,000

Shelf Active

Active S-3 Shelf Registration 2025-11-17

$1,000,000,000 registered capacity

On Nov 17, 2025, HYPD filed a Form S-3 shelf to issue up to $1,000,000,000 in various securities, including a sales agreement prospectus for up to $500,000,000 of common stock via at-the-market offerings with Cantor Fitzgerald and Chardan. The shelf is listed as not yet effective, with 0 recorded uses, indicating authorized but unused issuance capacity.

Market Pulse Summary

The stock moved +5.2% in the session following this news. A strong positive reaction aligns with pri...

Analysis

The stock moved +5.2% in the session following this news. A strong positive reaction aligns with prior crypto-tag catalysts, where average moves reached 16.22% around treasury and leadership updates. Investors have previously rewarded Hyperliquid-focused milestones and record net income of $6.6 million. However, the large unused $1,000,000,000 S-3 shelf and at-the-market capacity introduce potential future issuance risk that could temper extended rallies if used aggressively.

Key Terms

decentralized finance, validator, liquid staking token, stablecoin, +4 more

8 terms

decentralized finance financial

"become the leading Hyperliquid-native Decentralized Finance (“DeFi”) company"

Decentralized finance, often called DeFi, is a way of using digital technology to offer financial services like lending, borrowing, and trading without relying on traditional banks or institutions. It operates on open networks where anyone can participate, much like a digital marketplace that runs on shared computer systems. For investors, DeFi provides more direct control over their assets and access to financial activities outside conventional systems.

validator technical

"established the “Kinetiq x Hyperion” validator, with our partners Kinetiq and Pier Two"

A validator is a person or system that checks and confirms the accuracy and legitimacy of information, transactions, or data before they are accepted and recorded. In the context of digital assets or currencies, validators ensure that transactions follow the rules and are genuine, helping maintain trust and security in the system. For investors, validators are important because they help prevent errors or fraud, ensuring the integrity of the financial network.

liquid staking token technical

"its own Liquid Staking Token (LST) called HiHYPE (Hyperion Institutional HYPE)"

A liquid staking token is a digital asset that represents a stake in a blockchain network's security system, allowing investors to earn rewards for participating in network validation. Unlike traditional staking, which often locks up assets and limits access, these tokens can be freely traded or used in other transactions, providing flexibility and liquidity. This enables investors to earn rewards while still maintaining the ability to access or deploy their funds elsewhere.

stablecoin financial

"support the “Aligned Quote Asset” incentive for the USDH stablecoin"

A stablecoin is a type of digital currency designed to keep its value steady, often by being backed by traditional assets like money or commodities. For investors, stablecoins offer a reliable way to move money quickly across digital platforms without the value fluctuations common with other cryptocurrencies, making them useful for saving, trading, or transferring funds with less risk of sudden losses.

perpetual futures financial

"launch a “HIP-3” exchange, allocating 500,000 HYPE to enable users... to trade equities and commodities"

Perpetual futures are contracts that let investors bet on an asset’s price without a set expiration date, combining the ability to use borrowed funds with a recurring small payment or receipt that keeps the contract price close to the actual market price. They matter because they offer continuous, high-leverage exposure and deep liquidity—useful for quick trading and price discovery—but also raise the risk of forced exits and amplified losses, so they change how investors manage risk.

real world assets financial

"Tokenization and the digital representation of Real World Assets (“RWAs”)"

Real world assets are physical or financial things with intrinsic value—like property, commodities, equipment, loans or art—that are represented in the financial system either through traditional securities or digital records. For investors they matter because they can provide steady income, serve as tangible collateral and offer diversification compared with pure financial instruments; however they may also carry different liquidity, valuation and regulatory risks than purely digital or paper investments.

smart contract technical

"HyperEVM, a network of smart contract applications built on Hyperliquid"

A smart contract is a computer program stored on a blockchain that automatically carries out the terms of an agreement when preset conditions are met — like a vending machine that releases a snack when you insert the right coins. For investors, smart contracts matter because they can cut out intermediaries, speed up and lower the cost of transactions, and make outcomes more transparent, but they also introduce technology and regulatory risks that can affect asset value.

contract for difference financial

"instruments such as options and Contract for Difference (“CFD”)"

A Contract for Difference (CFD) is a financial agreement where you bet on whether the price of an asset, like a stock or gold, will go up or down. If your prediction is correct, you make a profit; if not, you lose money. It allows you to trade on price changes without actually owning the asset itself.

AI-generated analysis. Not financial advice.

LAGUNA HILLS, Calif., Jan. 12, 2026 (GLOBE NEWSWIRE) -- Hyperion DeFi, Inc. (NASDAQ: HYPD) (“Hyperion DeFi” or the “Company”) today issued a letter to shareholders from its Chief Executive Officer, Hyunsu Jung.

To the shareholders of Hyperion DeFi, Inc.:

Let me start by expressing my sincere gratitude to those sharing in our journey to become the leading Hyperliquid-native Decentralized Finance (“DeFi”) company. As I formally step into the CEO role at Hyperion DeFi, I wanted to take a moment to reflect on what we’ve built in 2025 and what we look to accomplish in 2026.

On June 17, 2025 we underwent a massive transformation from Eyenovia, a company building ophthalmic technology, to Hyperion DeFi – the first U.S. publicly listed company holding HYPE, the native token of the Hyperliquid blockchain, on its balance sheet. Last summer, while most Digital Asset Treasury (“DAT”) companies launched with the standard “buy-and-hold” strategy, we moved with speed and precision to deploy our treasury asset to establish differentiated business lines and strengthen our operational positioning:

• Within 8 days of completing our $50 million PIPE, Hyperion DeFi established the “Kinetiq x Hyperion” validator, with our partners Kinetiq and Pier Two, to earn staking rewards on our HYPE position while actively securing the Hyperliquid network;
  
  
• Within 30 days of our transformation, we became the first institution to have its own Liquid Staking Token (LST) called HiHYPE (Hyperion Institutional HYPE), which is used to engage in the HyperEVM, a network of smart contract applications built on Hyperliquid;
  
  
• By September, we designed and entered our first HYPE Asset Use Service (“HAUS”) Agreement with proprietary trading firm Credo, onboarding an institutional client to trade on Hyperliquid with the benefit of reduced trading fees;
  
  
• That same month, we announced the appointment of David Knox, the former Head of Capital Markets and Head of Finance for Global Credit and Financial Services at PayPal, as our Chief Financial Officer;
  
  
• In October, we announced a strategic partnership with Felix to launch a “HIP-3” exchange, allocating 500,000 HYPE to enable users globally to trade equities and commodities, 24/7, on Hyperliquid, creating a revenue stream that is agnostic to both the price of HYPE and the performance of crypto markets;
  
  
• In November, we announced third quarter 2025 financial results, with a record net income of $6.6 million, the most generated in the company’s 10+ year history;
  
  
• In addition, we received our first major token airdrop of KNTQ for our utilization of the Kinetiq platform, which by extension, provides HYPD shareholders with exposure to the growth of Kinetiq;
  
  
• And finally in December, we announced our partnership with Native Markets, allocating 300,000 HYPE to support the “Aligned Quote Asset” incentive for the USDH stablecoin.
  
  

Our actions showcase our firm belief: we win by positioning Hyperliquid and its ecosystem to win. We trust in the Hyperliquid core team to continue building an exceptional on-chain product in HyperCore, while improving the infrastructure on HyperEVM so that our partners can continue to develop applications that can serve retail and institutional users.

Hyperion DeFi plays a critical role in this ecosystem. We will continue to deploy our HYPE through various protocols and partnerships that support the growth of Hyperliquid-native primitives and establish diversified revenue streams from doing so. As our products and strategies become further integrated into the Hyperliquid ecosystem, our DeFi flywheel should accelerate, while simultaneously, Hyperliquid’s platform expands to service an increasingly on-chain global user base. But what backs our conviction – and our fidelity to this thesis – as we concentrate our efforts here?

Fundamentals Matter

Hyperliquid’s protocol revenues in 2025 showcase what is possible when next-generation infrastructure is built using blockchain rails: Hyperliquid became the highest revenue-generating blockchain network, accounting for over 30% of all blockchain fees at its peak in Q3 2025. More importantly, it allocated ~97% of those revenues to autonomously buying back and burning the HYPE token, removing ~13% of the circulating supply by the end of 2025. For Hyperion DeFi, as a company holding a significant quantity of HYPE on its balance sheet, this is a structural tailwind that simply does not exist in other blockchain ecosystems. Pair this with HYPE’s fixed supply of 1 billion tokens and one can imagine what happens when supply-and-demand mechanics are in full effect.

Despite strong fundamentals, a major question persists: can Hyperliquid sustain its position as the market leader for on-chain perpetuals, especially as the landscape becomes more competitive with the launch of other decentralized exchanges? Having been in this space for nearly a decade, I have seen numerous projects come and go, including other on-chain perpetuals products that launched years before Hyperliquid. I believe there is truly something remarkable about Hyperliquid – from its laser focus on building the best platform for trading any asset, to its origin story of being entirely self-funded, with no venture capital funding. This ethos – along with massively rewarding its early users – has earned Hyperliquid a deeply loyal community aligned to the platform’s success, while it continues to direct nearly all its revenues toward the repurchase of the HYPE token. At the same time, Hyperliquid has never compromised on technical performance, maintaining 100% uptime even during the biggest crypto liquidation event in history on October 10, 2025. We believe that there is simply no second best; liquidity is the ultimate moat and it is maintained with breakneck technical innovation on Hyperliquid. Our view is that these fundamentals – backed with transparent on-chain metrics – will compound over time and gain further recognition from users and investors, ultimately aligning Hyperliquid with secular megatrends.

The Tokenization Megatrend

The clear megatrend is tokenization and the digital representation of Real World Assets (“RWAs”). This is happening in real time, with major enterprises in both tech and finance adopting blockchain technology to streamline their offerings and enhance their product base. Eventually trillions of dollars will come on-chain, and there are only so many blockchain platforms that will have the infrastructure and scale to meet the needs of institutions. These non-crypto-native entities will demand credible neutrality, an immutable source of truth, smart contract programmability that removes the need for middlemen, and mechanisms that enable streamlined financial activity. Only blockchain can provide this and we believe Hyperliquid is the best positioned for this megatrend. Consider this: the total market cap of crypto is just over $3 trillion today – what happens as the Total Addressable Market of blockchain infrastructure ultimately becomes every RWA and their servicers?

For reference:

• Bonds / fixed income (global outstanding): ~$145T
• Public equities (global market cap): ~$126T
• Money Market Funds: ~$13T
  
  

The AI Megatrend

In parallel with the digital representation of financial assets, Artificial Intelligence is revolutionizing the global economy. AI and agentic ecosystems demand the highest throughput, lowest cost, and most reliable technological infrastructure – again, we believe Hyperliquid is the best positioned blockchain to benefit from the ramping prevalence and dominance of AI in the rapidly evolving financial technology sector.

In October 2025, an organization called Nof1 AI held a live trading competition called Alpha Arena, where multiple frontier models such as GPT5, Claude Sonnet 4.5, and DeepSeek Chat V3.1 were each given $10,000 to trade on Hyperliquid. Their goal was to measure the real-time investing intelligence of LLMs when competing in dynamic market environments. Although the experiment was completed in a closed loop, it was a clear signal that non-human participants will eventually be able to participate in financial activity via blockchain rails. As the capabilities of these AI-powered agents continue to improve, we expect decisions to deploy capital will rationalize to the platforms with the most liquidity, competitive pricing and technical efficiency. At the same time, across crypto, numerous teams are building products that enable AI-driven activity to move seamlessly cross-chain, using both on- and off-chain market signals. We believe that agentic participation on Hyperliquid is just beginning, and expect momentum to continue to ramp through 2026, which will positively impact capital efficiency, tighten bid-ask-spreads, and increase trading volume and liquidity, ultimately scaling the platform further.

The Pie Expands

Hyperliquid is not simply another on-chain perpetuals exchange – it allows for on-chain price discovery of tokenized assets at scale, and we believe it will serve as critical infrastructure in this coming technological shift. The perpetual future is a powerful financial instrument that can be used to compound, hedge or otherwise position for any asset, all of which eventually become represented on-chain. Non-crypto users today trade instruments such as options and Contract for Difference (“CFD”), which require brokers to act as counterparties for customized contracts. Perpetuals are exchange-traded – creating a transparent market with a funding rate mechanism to track prices – enabling a structure that can effectively represent any asset if it can be tied to a pricing oracle.

Thus the evolving competitive landscape is not about trying to acquire a larger share of the same pie – instead, we expect the pie to expand significantly over the next decade as users at the retail and institutional level seek out platforms like Hyperliquid in an increasingly financialized world. Winning infrastructure must allow for simple expression of belief, across any asset class, at any time, on a credibly neutral, public platform for financial services.

On Timing and Team

The digital asset space has shown time and time again that those that engage early – with conviction backed by a calculated outlook on the future – are rewarded. Hyperion DeFi is the first-mover building comprehensive exposure to the Hyperliquid blockchain ecosystem, and if done correctly, we expect to serve as the ideal gateway for both retail and institutional investors to access the most valuable components of Hyperliquid. By deploying markets that are globally accessible and trading 24/7, we can generate revenues regardless of the price of HYPE. Secondary to the launch of markets are the various entities that come to Hyperliquid – specifically to trade on those new markets – which we service through HAUS.

All together, we have a business that we believe will grow more powerful with scale – HYPE deployed to the right partners means that more markets can be created, which are the very products that can bring more global users to Hyperliquid.

Supporting us are a select cohort of PIPE investors, known for their long history in crypto, who share my conviction for the need to create a DeFi company focused on Hyperliquid. Our management team and board have also demonstrated their commitment to the business with their combined purchase of 189,204 HYPD shares in the month of December 2025. I personally am fully aligned with you, our shareholder, with ambitious milestones tied directly to the growth and long-term success of Hyperion DeFi.

I could not be more excited to work with the team we’ve built at Hyperion DeFi. Each collaborator is an expert in their field, and together with the rest of the ecosystem, we aim to continue building innovative products that establish Hyperliquid as the go-to venue for trading any asset, any time.

We are here to complete a singular mission and by doing so, believe we have an asymmetric opportunity to win together. Paradigm shifts are often years in the making, until suddenly, all at once, there is dramatic acceleration. When that time comes, we will be ready.

We hope that you continue along this journey with us – the best is yet to come.

Hyperliquid.

Hyunsu Jung
Chief Executive Officer
Hyperion DeFi, Inc.

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 January 2026, more than 37 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 company building a long-term strategic treasury of HYPE. 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.

Hyperion DeFi is also developing its proprietary Optejet User Filled Device that is designed to work with a variety of topical ophthalmic liquids, including artificial tears and lens rewetting products. The Optejet is especially useful in chronic front-of-the-eye diseases due to its ease of use, enhanced safety and tolerability, and potential for superior compliance versus standard eye drops. Together, these benefits may result in higher treatment compliance and better outcomes for patients and providers.

For more information, please visit Hyperiondefi.com or follow @hyperiondefi on X.

Forward Looking Statements

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

FAQ

What did Hyperion DeFi (HYPD) announce in the January 12, 2026 shareholder letter?

CEO Hyunsu Jung summarized 2025 transformations, a $50M PIPE, product partnerships, and record Q3 2025 net income of $6.6M.

How much HYPE did Hyperion DeFi allocate to the Felix HIP-3 exchange?

The company allocated 500,000 HYPE to enable 24/7 global trading on the HIP-3 exchange.

What is Hyperion DeFi’s recent financial performance reported in the letter?

Hyperion DeFi reported a record $6.6 million net income in Q3 2025, its highest in over a decade.

How did Hyperliquid token economics change in 2025 and why does it matter to HYPD?

Hyperliquid allocated ~97% of protocol revenues to buybacks, removing ~13% of HYPE supply in 2025, creating a structural tailwind for HYPE holders.

What strategic partnerships did Hyperion DeFi announce that affect HYPD shareholders?

Partnerships include Kinetiq x Hyperion validator, a HAUS agreement with Credo, Felix HIP-3 exchange allocation, and a Native Markets USDH incentive allocation.

What governance or management changes did Hyperion DeFi disclose on January 12, 2026?

The letter notes Hyunsu Jung as CEO and the appointment of David Knox as chief financial officer.