Capital Flows
· Capital Flows
· July 09, 2026 at 03:45
· ⏱ 2 min read
| Read on Substack ↗
Summary
PURR's mNAV volatility is a structural feature that compounds NAV, not a flaw, and the thesis rests on PURR's unique ability to fund large-scale HYPE deployment given its $2B+ HYPE treasury. The article argues the market is mispricing the ecosystem call option on Hyperliquid's largest holder, with warrants and lockup concerns overstated.
•PURR's mNAV has averaged 1.04 since December but traded between 0.77 and 1.30, with management issuing shares above ~1.1 and buying back below ~0.9.
•All warrants remain out of the money, the S-1 was a contractually required registration (not a sale), and sponsor shares remain locked with zero sold.
•PURR stakes 100% of its tokens, runs only four employees, and spreads a fixed expense base over a growing market cap—unlike ETFs with constant fees.
•PURR holds roughly $2 billion of HYPE plus $150 million in cash, giving it capacity to fund HIP3 deployments that few others in the ecosystem can match.