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Big Money Buys Hyperliquid: Is It Too Late?
23 Aug
Summary
- Institutional holdings in Hyperliquid Strategies surged 122%.
- Index inclusion drove many funds to purchase Hyperliquid.
- Hyperliquid's stock trades below its asset value, offering potential.
The number of financial institutions holding Hyperliquid Strategies has seen a dramatic 122% increase in the past quarter, now totaling 202. This significant growth includes major players like BlackRock and State Street. A primary driver for this influx was Hyperliquid Strategies' late June inclusion in the S&P Global Broad Market Index, as well as the Russell 2000 and Russell 3000 indexes. Funds tracking these benchmarks were compelled to acquire the stock.
While some institutions like Morgan Stanley and Invesco built index-scale positions, others, such as Citadel Advisors and Jane Street, are market makers whose activity may not reflect genuine conviction. BlackRock's stake, disclosed via a passive holder form, also suggests a different investment strategy. However, stakes like the one held by Duquesne Family Office were acquired independently.
Hyperliquid Strategies, operating as a digital asset treasury company, holds approximately 29.2 million Hyperliquid tokens, valued around $1.7 billion. The company's market value is about $1.4 billion, resulting in a net asset value multiple of roughly 0.84. This indicates the market is currently valuing the stock below its underlying assets, suggesting a potential buying opportunity for those willing to wait for the discount to close.
