We've had a handful of people reach out to us about selling some LSTR from our initial offering OTC. OTC means Over The Counter.
While we weren't initially planning to do OTC deals, we believe now might be the right time to offer them. LEO is rising rapidly in price and we want to sell out the entire LSTR offering before it rises beyond $0.10.
LEO will most likely be trading at $0.10 in the very near future. We believe this and it seems many others do - hence the buying frenzy happening on LEO right now.
WTS: OTC Deals Available
If you would like to do an OTC deal with LeoStrategy, reach out to us. You can do so by tagging @leostrategy on INLEO or by Commenting beneath this post. If you know anyone on the team, feel free to reach out to one of our team members or public board members via Discord or elsewhere to negotiate an OTC deal.
mNav Premium and Discount
Right now, LSTR is trading at a premium based on the net asset value held in @leostrategy (LEO value of our holdings).
We don't expect this to last very long. The average purchase price of LeoStrategy's LEO holdings is currently $0.0679. This is because we purchased much of our LEO at higher prices to current market value.
LEO 2.0 is quickly changing the value of LEO and this is a moment that we all have been waiting for. With LSTR's initial offering being priced at a static 4.25 HIVE price, we will soon be trading at an mNav Discount.
How it works is simple:
Right now, 1 LSTR is trading at 4.25 HIVE. At the current HIVE price ($0.2395), this = $1.017
LEO is currently trading at about $0.04. This means that 1 LSTR is for sale in our initial offering at a value of 25.425 LEO.
The current max supply of LSTR (based on the initial offering) is 100,000 LSTR tokens. The circulating supply outside of what is for sale is ~20,000 LSTR.
This means that the circulating supply of LSTR is = 508,500 LEO. However, @leostrategy owns 417,621. This means that LSTR is currently trading at a premium relative to our LEO holdings.
This is one way of valuing LSTR.
Simpler Math
The simplest way to value LSTR is to:
- Look at how much LEO LSTR holds. Currently, that is 417,621
- Look at the current value of LEO and * by our holdings to get Net Asset Value (NAV) = 417,621 * 0.04 = $16,704.84
- Look at the outstanding LSTR shares (what has been sold out of our initial offering) = 20,000 LSTR
- Multiply by current LSTR valuation (4.25 HIVE/LSTR) = 20,000 * 4.25 = 85,000 HIVE ($20,400)
LSTR is currently trading at a PREMIUM because the value of outstanding LSTR shares is $20,400 but the NAV (Net Asset Value) in the fund = $16,704.84.
What Happens When LSTR is Trading at a Discount?
Since LSTR has been trading at a premium for quite some time, we have been struggling to sell our LSTR initial offering. We expect this to change drastically when LSTR is selling at a discount.
Think about it this way - if LSTR is trading at 25.425 LEO/LSTR right now but it holds only 20.881 LEO per oustanding share of LSTR, then it is expensive to purchase LSTR and cheaper to buy LEO.
What happens if the ratio shifts in the other direction?
What if LSTR is trading at 15 LEO/LSTR and we hold 20.881 LEO per share of outstanding LSTR?
Then buying 1 LSTR = a 5.881+ discount over buying LEO straight from the market. This is where LeoStrategy leverage comes into play. As the fund acquires more LEO by the following means, the LEO per share of LSTR ratio rises:
- Holding sLEO to earn USDC and buyback LEO daily
- Generate blogging revenue on INLEO
- Generate referral revenue on LeoDex
- Generate other means of revenue
*all revenue buys and stakes more sLEO
Buying 1 LSTR Right Now is Equivalent to Buying 20.881 Shares of LEO
Since LSTR is currently priced on the market (through the initial sale of 100k LSTR) at 25.425 LEO, this is not very attractive.
In the coming days, this premium will shift to being a discount. We expect things to change dramatically at this point.
Liquidity Pool for LSTR
Khal is our chairman and he recommended we consider an LSTR:HIVE or LSTR:LEO pool on Hive-Engine.
We are considering the implications of this. The goal is to provide both entrance/exit liquidity and an open market to trade LSTR. This becomes increasingly important after the initial sale is completely sold out.
If you have any thoughts on this, drop a comment below.