Many are confused as to reasons to buy $LSTR. Before getting into the why, perhaps we should briefly cover the what.

What is Leostrategy (LSTR)?

As you can guess from the name, this is model that follows Microstrrategy yet is contoured to $LEO.

While MSTR is known for this model it is really called Bitcoin Treasury companies. They are ones that add Bitcoin to their balance sheet and trade on the public markets.

When looking at these entities, we are dealing with two numbers of importance: the value of the enterprise versus the NAV of the asset. In the instance of LSTR, the underlying is LEO.

We often see mNAV when talking about these types of companies. This stands for multiple Net Asset Value.

Here is a chart of some of the Bitcoin Treasury companies that are out there and the mNAV.

As we can see, the mNAV 1.3 to 9.3 depending upon the company. This means the stock price is that X higher than the underlying asset.

Each of these is trading at a premium against the Bitcoin.

Leostrategy

Leostrategy is following a similar design just using LEO. At present, MSTR is trading at a discount as opposed to a premium.

Here is how it looks:

There are 22,595 LSTR sold at a present with a price of $1.02 . This is a enterprise value (market cap) of $21,047.71

467,386.84 LEO is held by Leostrategy. At a price of $.042, this is $19,630.24 in LEO NAV.

Doing the math we have:

$21,047.71/$19,630.24 = 1.07x

Compared to the multiples on the chart above, this is low. We can see how the premium is under what is common in the Bitcoin Treasury companies.

Of course, this is not an exact science. Leo and Bitcoin are worlds apart. We are also dealing with liquid markets (stocks) versus a token on Hive Engine. Liquidity is a major issue.

The advantage is there are only 100K LSTR available. Once they are out, that is it. The idea is to keep building the project in a way where the mNAV keeps increasing, at a rate that is higher than the just the price of LEO.

This is what provides the token holders a leveraged gain.

Liquidity

One of the major issues at the moment is liquidity of the LSTR token. It is still in the initial sale so trading is limited. This is bad for traders since there is nothing worse than getting into a position that cannot be exited.

It is going to be addressed in a couple ways.

In discussions behind the scenes, we are going to see a LP added to Hive-Engine. This will allow for holders to provide liquidity, helping the entire ecosystem.

Another idea that is gaining traction is eventually placing LSTR on Solana. By tapping into larger networks, we can pull liquidity towards Leo. This will also set up arbitrage opportunities for traders (bots) on LSTR.

This is crucial for the increase in mNAV. Without liquidity, the market cap of LSTR will be stifled. We often see this with thinly traded assets.

As LEO becomes harder to come by due to the Leo 2.0 mechanisms in place, other avenues will be sought. Traders can pit LSTR against LEO based upon the pricing of each. Providing other entry points via other chains is a positive.

Why Buy $LSTR

Why do you want to be involved in LSTR? Why not just buy LEO and handle it yourself?

The reason for this is twofold.

First, we have the multiple revenue streams that might not exist at an individual level. For example, bridging between networks generates revenue. For Leostrategy, it is likely this is used to buy LEO and stake it. This will earn more USDC which can buy more LEO.

As more revenue streams are developed and implemented, there is a built in feeder system for LSTR. Individuals will not have this.

Second, the mNAV. When people get involved in this types of structures, there is a premium. It is same no matter what the commodity. This is a leveraging of the holdings, driven by market action.

For example, if the mNAV goes up from 1.03 to 2.06, the value of each LSTR, relative to LEO, doubled. It is not, however, due to a doubling of the LEO price. If that was the case, the multiple increase is likely higher.

To realize this, of course, the market has to be fluid and liquid. That is why this point was mentioned. For now, it is hard to see but the model always works the same. With this in the plans, we will incrementally move closer.