LeoStrategy's mission is to acquire LEO and generate accretive value to LSTR stakeholders. This mission is extremely simple and the strategies that we follow to accrete value to LSTR stakeholders are inspired by Microstrategy which has generated multiple billions of dollars in value for MSTR shareholders.
Valuing LSTR Right Now
Right now, LSTR is still in our initial sale phase. This will last until LSTR is 100% sold out on Hive-Engine. As it stands, there are only 63,815.713 LSTR available for sale at 4.25 HIVE per LSTR ($0.925 USD). Once these are sold out, that is it. The initial sale phase ends and then we release the LSTR:LEO pool which will be priced 1:1 in terms of the value of our LEO holdings. All else being the same (right now), this means LSTR's price for the pool launch will be
Our fund holds over 700,000 LEO already (and growing). The current value of this LEO is $49,000 USD. Being that only 36,184.287 LSTR have sold and the current value of LSTR is $0.925, the outstanding LSTR value = $33,470.46.
This means that the value of LEO backing the outstanding LSTR shares = $1.46 worth of LEO per $1 of LSTR shares outstanding.
People have caught on to this discount which is only present because of the market dynamics of HIVE and LEO. HIVE has been dropping in price while LEO has been rising in price. Since LSTR's initial sale is priced in terms of HIVE, this means that LSTR's initial sale price has been dropping below $1 (the intended sale price of LSTR) while the value of the LEO we own has been rising rapidly.
The fund's initial sale trading at a temporary discount means that anyone who buys $1 worth of LSTR today is effectively buying $1.46 worth of LEO.
Needless to say, we believe the LSTR sell wall is going to sell out very quickly from here.
LeoStrategy's First Service Will Be Released Next Week
LeoStrategy's strategy to accumulate more LEO is quite simple:
- The initial sale raises permanent capital to acquire LEO and back the initial fund's value
- The LEO we acquire is staked as sLEO to earn USDC on https://leodex.io/leo
- The USDC we earn will permanently buy LEO with the USDC we earn and autocompound our sLEO holdings
- Posting on INLEO Threads/Blogs earns LEO/HBD/HP, we stake the LEO for sLEO, we convert HBD to LEO and stake for sLEO and we keep the HP powered up and delegate to @leo.voter
Our next major method for generating accretive LEO value to LSTR stakeholders is going to be a service we launch on the INLEO Platform. The service is currently being designed and built. It will be operated by LeoStrategy for a small fee and LEO stakeholders on INLEO will be able to utilize the service.
With the LEO team's official backing, we believe this service could get some heavy usage. We anticipate this will generate well north of 1,000 LEO per month for the LSTR fund (very approximate and very underestimated).
Using the absolute minimum bar we expect to earn (1,000 LEO), this would mean that every outstanding share of LSTR (when the full 100,000 LSTR shares are sold out - 63k remaining) will generate 0.01 LEO per LSTR share in value for LSTR stakeholders each month.
Keep in mind that all of these LEOs will be staked for sLEO on LeoDex.io/leo and immediately begin earning USDC and autocompounding for more LEO each day as well.
The snowball effect of LSTR not only acquiring a massive stake of LEO through our initial sale but then launching financial tools and services on top of the LEO Economy to generate more LEO and permanently lock it in our sLEO holdings is going to be incredibly beneficial not only to all LSTR stakeholders but also all LEO stakeholders - since we are effectively generating revenue for our fund and using 100% of our revenue to buy LEO off the market and permanently lock it up - it will NEVER be sold on the market. Ever.
Next Steps
Our next steps as a fund are simple:
- Selling out our initial sale as soon as possible is critical - this allows us to acquire a massive stake in LEO while it is still cheap
- We're designing and developing our new LEO Service with the help of the Leo Team. This will allow us to operate the service without any help from them - reducing burden for the core team to focus on building LeoDex, LeoAI, INLEO and all the incredible technologies they have planned - LeoStrategy acts as a financial 2nd layer aka a 2nd LeoTeam that can operate without extra burden on the LEO Core Team
- Prepare to stake all of our LEO as sLEO, earn USDC and autocompound
Our new service will generate a lot of LEO in the long run and 100% of this LEO is permanently staked for sLEO and backs the value of LSTR.
With current numbers, LSTR's pool is going to launch with a value of $1.46 per LSTR. You can buy LSTR right now for $0.925 on Hive Engine.
We'll leave you with the math to think about. Here's the link to buy LSTR if you feel like this is something interesting to get involved with -> https://tribaldex.com/trade/LSTR