There are now nearly less than 70,000 LSTR available in our initial sale. Once these 70,000 tokens are sold out, that is it. The initial sale phase of LSTR is over.
After this is done, the ability to trade LSTR will open up. The price of LSTR will also be set at a higher-than-current market price. The initial sale is officially in the discount zone.
How are both of these things possible? We'll explore this question in today's post.
The Phase 2 Price of LSTR
After LSTR's initial sale is over, we will launch an LSTR:LEO liquidity pool of Hive-Engine. This will be the first liquidity pool launched by LSTR.
This pool will be priced based on the current mNav value of the LSTR Fund. You can predict this price by simply taking the total value of LEO holdings (in USD) of LeoStrategy and comparing it to the outstanding market cap of LSTR.
Currently, the mNav is trading at a discount relative to the initial sale price of LSTR. In layman's terms - this means that LSTR's initial sale represents a discount to the actual price of LSTR tokens when Phase 2 begins and we launch the liquidity pool.
LSTR's Phase 2 Pool Price Will Be $1.32 (Or Higher)
you can predict the launch pool price of LSTR:LEO by simply looking at the amount of LEO held by LeoStrategy relative to the issued/circulating tokens of LSTR
Based on our current mNav, the LSTR:LEO liquidity pool will be launched at 22 LEO per LSTR token.
22 LEO is currently worth ~$1.32 and is likely to be worth more in the future. LEO 2.0's tokenomic changes have created an environment where LEO is scarcely available, being burned daily and also has buyback pressure from both @leopool and @leodex.
Right now, LSTR is trading at $1.02. This means a buyer right now can take advantage of an instantaneous 30% gain in value by buying LSTR from our initial sale and holding it through to when the Phase 2 pool of LSTR goes live.
How is a 30% Instant Gain Economically Feasible?
It all comes down to mNav. LeoStrategy is acquiring LEO off the market. LEO is rising in value. If LEO continues to rise in value, then the value of our holdings (in USD terms) are outpacing the fund's initial sale price. We do not change the initial sale price - it is right around $1 at all times.
So if we buy LEO while it is low and the price of LEO rises (as it has the past several weeks), then the mNav discount relative to the initial sale of LSTR increases.
As that discount increases, the value of the fund's holding of LEO outpaces the value of LSTR that is being artificially priced low because of the initial sale sell wall.
Once these 70,000 tokens are sold out, there will be no more sell wall for LSTR. The LSTR:LEO pool will be the open market where LSTR is traded.
It is likely that people buy/sell LSTR regularly based on mNav and the fund's value. Keep in mind that the fund is generating revenue through several avenues and is looking to build more revenue generation mechanisms.
100% of all this revenue buys more LEO for the LSTR fund and creates more mNav value for LSTR shareholders.
Buying 1 LSTR now means buying a token that will always rise in an LSTR per LEO share value. As this rise continues, we'll find more ways to buy more LEO and continue to drive more value to shareholders.
LSTR's mission is to be the Microstrategy of LEO. To acquire as much LEO as possible while generating per share value for LSTR holders.
1 LSTR is worth ~22 LEO right now and this will continue to rise in the future. As LEO's USD value rises, we could see LSTR's value rise exponentially.
Imagine the not-so-distant future when 1 LSTR = 50 LEO. If LEO is trading at $1 (we find this very likely by the end of this year), then LSTR will be worth $50.
This is a 50x from today's token price. LSTR would be worth a minimum of $50 per share with 0 speculative value (this means the actual value of the fund itself would be $50 per share and most Strategy companies trade at a slight premium to actual value).
How is $50 Per Share of LSTR Possible?
Two things drive this:
- LeoStrategy's ability to increase our LEO per share of LSTR holdings by 2x (currently 22) to 50 LEO per LSTR held by the fund
- LEO's ability to reach $1 and beyond in the future
The LEO team has proven at every step to be more than capable of innovating their way to greatness. LeoDex is already a top 10 cross-chain DEX in less than 5 months of the team going full-time on it. Khal has said that Perpetual Futures and other features are on the way which will drive even more revenue to LeoDex. 100% of that revenue is distributed as USDC to LEO stakers on LeoDex (we will be the #1 staker earning USDC there and using our USDC to buyback LEO daily, which is built-in buy pressure).
These USDC buybacks are a big way we make #1 happen. We also look for any and all other means of driving accretive revenue that buys LEO and stakes it in the fund - increasing the LEO per share of LSTR value of the fund precipitously.
LEO to $1 would be a 16.6x from today's price. As LeoStrategy successfully drives in new revenue inflows and other means of buying more and more LEO, we will increase the LEO per share of LSTR from 22 to 50. With these numbers as an example, LeoStrategy will do a 50x while LEO does a 16.6x
We are not saying to not buy LEO. In fact, we think it's the best investment in 2025. You're buying into a team that relentlessly innovates new technologies and does not give up.
We are saying that if you want a hands-off approach to investing in LEO or perhaps want extra exposure to LEO or want access to a new style of derivative (our approach emulates MSTR's approach to BTC), then LSTR might be something you're interested in.
At the very least, speculating on the essentially built-in price increase of the initial sale of LSTR to the Phase 2 pool launch could be a good idea.
If you find any of this compelling, get yourself some LSTR exposure by buying at our initial sale price. Whenever these 70,000 tokens are sold out, we will immediately reprice LSTR using the mNav at that time. LSTR is currently trading at a ~30% discount. If LEO continues to grow and LeoStrategy continues to acquire more of it, then this discount will grow too and the pool launch of LSTR could be $2+ per token or higher which would be an instant 2x for today's LSTR buyers.
Onwards fellow lions 🦁