LeoStrategy is a permanent capital vehicle with a singular driving mission: raise LEO Per Share of outstanding LSTR shares. Right now, our LEO Per Share (LPS) is 22.416. With the current LEO price, this means each share of LSTR should trade for no less than $2.802 based on our fundamental mNav (Market Cap to Net Asset Value). If LSTR trades under this price, it means you can buy into the fund at a discount to the actual LEO holdings in the fund.
LeoStrategy's Edge as a Strategy Company | Infinite Value Accretion
Bitcoin Strategy companies are primarily about creating financial engineering opportunities to dilute shareholders and use that dilution to purchase more BTC in a way that is accretive.
If that sentence doesn't make sense to you, a more plain english explanation is that these companies (like Microstrategy) create more common stock share (i.e. MSTR shares) and use the capital raised from that creation of shares to buy more BTC. However, they find ways to do it so that the added dilution of stock to existing shareholders is less than the added Bitcoin Per Share (BPS) to their balance sheet.
So for example, if MSTR goes out and dilutes the shares by 10%, they want to add more than 10% worth of BTC to replace that dilution. Since BPS is measuring the Bitcoin per Share, it's a great metric for seeing the success of this. If you dilute the shares by 10% but only add 10% of BTC to the BPS, then the BPS actually stays flat. It doesn't increase. Thus, you didn't do your job well.
Thus, the way to value a Strategy company is to see how fast they can raise the "asset per share".
In our case, this is LEO Per Share (LPS). In the past week, we have raised LPS by over 1 LEO Per Share of LSTR (100,000 LSTR shares outstanding) and we did so without any current dilution of LSTR shares. This means that it was instantly accretive to the value of LeoStrategy (LSTR) shareholders).
The LPS growth was 3.75% week over week. Annualized, that is a LEO Yield (growth in LPS per year) of 195.6%.
Our edge as a Strategy company is that we are not only adding LEO to our balance sheet using financial engineering. We are also building autonomous agents / projects that generate revenue, capture that revenue and deliver it as purchasing power to fund more LEO buys to add to our balance sheet.
Example of this include:
- LeoStrategy's Hive-Engine Market Maker
- Our Cross-Chain Market Maker
- LeoStrategy's content on the blockchain (
blogs and threads)
- USDC earnings from LeoDex sLEO stake (soon all of our stake will be held as sLEO, earning USDC daily when rewards start and using all USDC to buy more LEO)
- (soon) Collateralized Lending on LEO
- ... and many more products to come!
As LeoStrategy builds out our suite of products and services, we do so in a way that is fully autonomous. This generates the edge that we have over other Strategy companies:
We can generate revenue with very little-to-no overhead. This revenue is infintiely accretive in terms of raising the LPS on our balance sheet. How? Because when we buy LEO using profits from revenue, it is technically a $0 cost of acquisition and has 0 dilution to LSTR holders. When you purchase an investment for $0, your ROI on that investment is infinite (pay $0 and may $1 = infinite return).
Any LEO we acquire using revenue-generation is infinitely accretive to all LSTR shareholders.
Our Vision
Our vision is to combine sustainable revenue-generation with financial engineering to hypercharge $LEO acquisitions. By the end of 2025, we have a plan to own at least 10M LEO. That is 33.33% of the circulating LEO supply. Our LEO is held as sLEO (staked LEO) on Arbitrum in a multi-sig vault. It requires more than 2/3rds of all Board Members to make any decisions regarding our LEO Stake. There are a handful of members including Khal himself.
The mission of LeoStrategy is to acquire as much LEO as possible and never sell our LEO. This part of our mission will never change. We will never sell a single LEO. This means that 10M LEO is effectively off the market and will never be returned to the market. That leaves 20M LEO on the market by other holders (which actually decreases over time because of LeoBridges earning revenue and burning LEO every day).
With our vision of LEO accumulation, we believe LEO will become hyper scarce. In the future, buying 1 LEO will be seen like buying 1 BTC. You can casually go out as a regular human and buy 1 HIVE or 1 DASH or 1 HBD for example but you cannot casually go out and buy 1 BTC unless you're Elon Musk or Michael Saylor (billionaire).
A similar scarcity is coming to LEO. There are only 30M LEO tokens out there. There can never be more. LeoStrategy intends to acquire as much of this supply as possible, stake it all permanently as sLEO and autocompound the USDC staking earnings for more LEO every day. If LeoDex achieves $1,000+ USDC in revenue per day, and LeoStrategy has more than 50% of the sLEO, then that means $500 per day in USDC is autonomously buying and compounding LEO.
LeoStrategy will never stop on this path of accumulation. This path will accelerate as our balance sheet grows. If you study Microstrategy, you will understand this acceleration. Scale begets more scale. The bigger our balance sheet grows, the more capital we can raise and revenue we can generate. That capital and revenue buys more LEO to raise LPS which expands the balance sheet further and allows us to generate yet again; more capital and more revenue.
LEO is headed for $1,000+ per LEO by 2035 and LeoStrategy intends to be a multi-billion dollar fund by this point. Owning 10M LEO by the end of 2025 is a mere stepping stone to this goal. LEO will get exponentially harder to acquire in the future.
Right now, you see LeoStrategy buying ~30,000+ LEO per day. As LEO gets more scarce, this amount of LEO will slow down but we expect the $ value of LeoStrategy buys to increase. This means the LEO Price must rise exponentially. There is simply not enough LEO out there for all of us. Time to compete and watch the price rise. As this price rises, our balance sheet expands and gives way for more capital accretion to use for LEO purchases 🔂
If you like what you read here and want to support the LeoStrategy vision, get some SURGE. SURGE is available in Presale. It is a $1 stable asset that pays a ~19% effective yield at the current price. The yield is paid weekly as HBD or LSTR or USDC (user preference). It also has a conversion option to LSTR common tokens at 50:1 which acts as a long-dated call option on LSTR rising to $50+ per token in the future.
Limited SURGE Presale -> https://tribaldex.com/trade/SURGE