Bitwise Flags Mispricing in Hyperliquid’s HYPE Token

• Bitwise says HYPE is mispriced, with Hyperliquid generating up to $1B annualized revenue.
• Hougan argues investors wrongly value Hyperliquid as crypto-only instead of a global multi-asset trading platform.
• About 99% of fees fund buybacks, implying a 10x–14x valuation gap versus traditional financial peers.

Bitwise Chief Investment Officer Matt Hougan said Hyperliquid’s HYPE token remains significantly undervalued. According to Bitwise, Hyperliquid generates about $800 million to $1 billion in annualized revenue. The firm also values its buyback stream at roughly 10x to 14x. The comments focus on market pricing gaps and asset classification in crypto markets.

Revenue Scale And Market Classification Debate

Hougan said the market misprices HYPE due to two key errors. According to his note, investors first misclassify Hyperliquid as a crypto futures exchange. However, he said the platform should be valued as a global super-app. 

This includes exposure to crypto, equities, commodities, FX, prediction markets, and structured products. He added that this expands its addressable market far beyond crypto. According to his estimate, crypto represents about $3 trillion in assets. 

However, global assets reach nearly $600 trillion. Hougan said this difference creates two separate valuation frameworks. He also noted that current pricing reflects only the smaller market view.

Buybacks And Institutional Comparison Models

Hougan also pointed to what he described as an anchoring error in investor behavior. According to him, investors still assume crypto tokens fail to capture value. However, he said HYPE differs due to its structured buyback model. 

He stated that about 99% of trading fees fund token buybacks. He compared Hyperliquid’s structure with public financial firms. According to his analysis, Hyperliquid’s valuation implies a 10x to 14x multiple on its buyback stream.

He also referenced traditional benchmarks for context. Robinhood trades at a 37 price-to-earnings ratio, while CME trades at 24. Hougan said Hyperliquid’s revenue base reaches $800 million to $1 billion annually. He added that growth rates remain higher than those benchmarks.

Expansion Into Multi-Asset Trading Systems

According to Hougan, Hyperliquid now operates beyond crypto trading. He said the platform supports commodities, equities futures, and pre-IPO instruments. He also noted rising volume from non-crypto assets. 

He said nearly half of trading activity now comes from those markets. Additionally, prediction markets now form part of its product expansion. These markets allow exposure to broader financial risk instruments.

Hougan linked this expansion to regulatory developments under SEC Chair Paul Atkins. He said regulatory direction supports broader multi-asset trading systems. He also referenced Hyperliquid’s trading volume reaching $170 billion in one month. According to him, this growth reflects expansion beyond crypto-only markets.

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