The LEO 2.0 changes have completely reshaped the LEO token economy. We believe that seeing LEO in the $1-$3 range by the end of 2025 is not only doable, but highly likely. Khal and the LEO team have pushed the boundaries of what is possible - launching a cross-chain DEX interface in April and already doing over $2M in volume as the #1 interface for Maya Protocol and a consistently top #10 interface for THORChain.
This kind of rapid progress and ridiculous innovation is what the LEO team is great at. They needed to break out of the Hive bubble in order to build externally and truly tap the potential of this crypto industry. The world out there is so much bigger than the tiny world in here. We at LeoStrategy are extremely happy to see this new direction and we truly believe that $LEO is on its way to a $100M market cap valuation VerySoon™️.
LeoStrategy's Permanent Capital Strategy for Multi-Million Dollar Gains Investing in LEO
LeoStrategy is a permanent capital vehicle for investing in LEO. We've laid out why we believe LEO is headed for $100M. Now we will talk about how LSTR creates a permanent capital base that not only benefits from LEO's rise to glory, but actually helps it.
Warren Buffett pioneered the idea of Permanent Capital with Berkshire Hathaway. Berkshire was a textile company that Buffett acquired and eventually took over. He closed his Hedge Fund and instead used Berkshire as a holding company to acquire an insurance company, a bank, a real estate company and the dozens of other high quality businesses he would later acquire throughout his career.
This unique capital structure offered signifcant benefits (and still does to this day) to Buffett.
The most important one? Permanent Capital.
What is Permanent Capital
The key difference between a hedge fund and a PCV (Permanent Capital Vehicle) is that in a hedge fund, investors are expected to redeem their money at some point. Investors can deposit and withdrawal their money (like a bank account). This means that the fund needs to sell off some of its shares to meet redemptions - when people withdraw money, the fund needs to sell its holdings in order to pay out investors.
A PCV on the other hand doesn't sell its holdings to meet redemptions. Instead, the PCV has a stock ticker and that ticker can be bought, sold and traded on the open market. When investors want to invest in the fund, they buy the ticker. When they want to exit the fund, they sell the ticker.
The ticker trades based on the fund's underlying holdings and how well it is being managed. Effectively, it isn't much different than a hedge fund. The key difference is that "redeeming" aka "withdrawing" your money means selling the ticker based on the valuation of the fund's holdings as opposed to centrally asking for your money back, the fund selling shares of its holdings and then paying you out in cash.
How LeoStrategy Achieves What Warren Buffett Built With Berkshire, But for LEO
LeoStrategy is built like a Strategy company. We mirrored Microstrategy in this sense. We also mirrored the "Permanent Capital Vehicle" setup that Buffett has used to create hundreds of billions of dollars in value for himself and his investors.
How do we achieve this?
Exactly as described above: instead of a traditional fund setup with dividends and redemptions, LSTR is a PCV. When you want to invest in the fund, you buy the LSTR ticker. When you want to exit the fund, you sell LSTR.
This allows LSTR to raise permanent capital (i.e. through our initial sale of LSTR tokens at a price of ~$1 on Hive-Engine) and invest in LEO and NEVER SELL THE LEO WE BUY.
We cannot emphasize the importance of this enough. The way that LeoStrategy is set up is in a way where we never sell the LEO we acquire. This is made possible through our permanent capital structure.
By having this structure, we can acquire and hold LEO through volatility. We can find ways to acquire more and more LEO. We can stake our LEO for sLEO and earn USDC and permanently compound it for more LEO using https://leodex.io/leo.
LeoStrategy's permanent capital base is formed out of the LSTR initial sale. Once this is sold out, the initial sale is over and we will launch an LSTR:LEO pool on Hive-Engine.
This pool will then become the open market for LSTR buyers and sellers. Pricing the LSTR token in terms of LEO is also a key part of this strategy. Why? Because the fund holds a specific amount of LEO and that amount of LEO grows every single day through:
- Holding sLEO, earning USDC and autocompounding for more LEO
- Using Hive Rewards to autocompound for more LEO
- Earning LEO rewards on INLEO and staking for LEO
- Launching revenue-generating services on/off Hive that generate revenue and autocompound for more LEO
- ...
In short, LeoStrategy will continuously find ways to acquire more LEO and increase the "LEO per share of LSTR" value of the fund.
Right now, 1 share of LSTR is worth ~23 LEO. This metric will always increase over long periods of time. It does this because the 4+ (and always growing) list above is all designed to achieve our very simple mission statement:
LeoStrategy is a blockchain-based vehicle designed to acquire LEO and hold it forever
If you believe in what we're building, buy some LSTR on Hive-Engine. 100% of the proceeds form the permanent capital base described in this post - 100% of the SWAP.HIVE earned from the LSTR initial sale is used to buy LEO and stake it for sLEO on https://LeoDex.io/leo. Then, 100% of our USDC daily payouts from LeoDex will autocompound and buy more LEO each day.
This creates buy pressure on LEO while forever increasing the LEO:LSTR value of our fund. The other methods we have for generating revenue will continue to increase our LEO stake as sLEO on LeoDex to add to the compounding effect.