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HyperStrategy runs a single, compounding loop: issue onchain financial instruments to raise capital, use that capital to buy HYPE, put the HYPE to work earning yield, and channel those returns back into buying even more HYPE. As the treasury grows, the value backing each HSTR token rises, which makes future issuance terms more attractive, which draws in more capital, and the cycle repeats. Every part of the system reinforces every other part.

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The Flywheel

1

Issue Financial Instruments

HyperStrategy issues onchain instruments to participants, starting with USDT0-denominated convertible bonds, with additional bond formats and issuance products on the roadmap. You provide capital and receive ERC-20 tokens in return. The raised capital flows directly into the treasury to purchase HYPE.
2

Accumulate HYPE & Farm Yield

The treasury deploys acquired HYPE across risk-adjusted yield farms on HyperEVM. Yield is continuously reinvested, compounding the amount of HYPE the protocol controls. HyperStrategy has established partnerships with native HyperEVM protocols that offer preferential TVL terms.
3

Buybacks & Treasury Growth Push NAV Higher

Farming proceeds fund HSTR buybacks and additional HYPE acquisitions, reducing circulating float and growing treasury value simultaneously. As Treasury AUM rises relative to HSTR market cap, the mNAV ratio climbs.
4

Better Issuance Terms Attract More Capital

A higher NAV and stronger HSTR price make future issuances more compelling for new participants. More capital enters, more HYPE is acquired, and the flywheel accelerates, more HYPE, more yield, more buybacks, higher NAV, stronger HSTR.

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Convertible Bonds, The Flagship Instrument

Convertible bonds are HyperStrategy’s first and most important financial instrument, the engine that bootstraps protocol-owned HYPE today. Additional bond formats and issuance products are on the roadmap, but convertible bonds remain the foundation of the protocol.
When you purchase a bond, you deposit USDT0 and receive a bond token representing your position.

At maturity, two things can happen:
  • HSTR market price ≥ strike price → Your bonds automatically convert into HSTR at the predetermined strike rate, giving you direct upside exposure to the treasury’s growth.
  • HSTR market price < strike price → You reclaim your full USDT0 principal. You take no loss on your initial capital.
Convertible bonds are principal-protected. If the strike price is not reached by maturity, you receive 100% of your deposited USDT0 back, no penalties, no haircuts.
Purchase and manage bonds at bonds.hyperstrategy.com. Bonds are issued against USDT0, the HyperEVM USDT contract address is 0xB8CE59FC3717ada4C02eaDF9682A9e934F625ebb.

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Treasury Farming

HYPE that enters the treasury does not sit idle. The team, experienced DeFi operators with multi-cycle backgrounds, actively deploys HYPE across the highest risk-adjusted yield opportunities on HyperEVM.
HyperStrategy has secured partnerships with emerging HyperEVM native DeFi protocols that offer special TVL incentive deals, giving the treasury access to yields not available to the average participant.
Yield generated from farming is continuously routed back into two uses: acquiring more HYPE for the treasury and funding HSTR buybacks on the open market. The HYPE side compounds the treasury; the buyback side tightens HSTR float, and both push mNAV higher independent of new bond issuances.

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Looping Strategy

Beyond direct farming, HyperStrategy employs a looping strategy to amplify HYPE exposure:
  1. Use HYPE as collateral on lending platforms
  2. Borrow stablecoins against that collateral
  3. Buy more HYPE with the borrowed stablecoins
  4. Repeat to build a larger HYPE position than the base treasury capital alone could achieve
Hyperstrategy Loop2
mNAV (modified Net Asset Value) is the primary metric for evaluating HyperStrategy’s performance: 
mNAV = Treasury AUM ÷ HSTR Market Cap
An mNAV above 1.0× means the treasury holds more value than the total market capitalization of all outstanding HSTR, in other words, you are buying the treasury’s assets at a discount. As the flywheel accelerates and the treasury grows faster than new HSTR is minted, mNAV rises. Track the live mNAV, treasury composition, and HYPE holdings at portfolio.hyperstrategy.com.