LeoStrategy's strategy to accumulate LEO and be a permanent capital vehicle for the LEO Token Economy is just getting started. The initial sale phase of the LSTR token is how we built an initial capital base. Now that the initial sale has been immensely successful - selling out on Monday of this week with investors up 100% on their investment already - we're ready for the next Phase of LeoStrategy.
The Importance of Revenue
The importance of LeoStrategy's capacity to generate revenue cannot be understated. Driving revenue from core business practices and using 100% of all that revenue to purchase LEO and permanently stake it on our balance sheet is how LeoStrategy ensures long-term growth, appreciation in LSTR and LeoStrategy Derivatives and overall valuation of our fund.
LEO Per Share (LPS) is the core KPI (Key Performance Indicator) for measuring LeoStrategy's success as a fund.
LSTR is trading for $1.97 right now. The fund holds ~15 LEO per Share of outstanding LSTR. LEO is trading at $0.135 which means LeoStrategy holds $2.025 for every 1 share of LSTR outstanding. Our LSTR shares are trading at a slight discount to fund value.
Typically, Strategy companies (like Microstrategy) trade at a premium to their fund's net asset value (for example, Microstrategy is trading at $1.5B in market cap for every $1B of Bitcoin they hold right now = 1.5x mNav).
Velocity of accumulation is the core driver of this metric. The more that the market thinks Michael Saylor can accumulate Bitcoin, the more potential value that Microstrategy has on its balance sheet. The market values this velocity as it also weighs the current holdings. This leads to a premium on mNav.
Will LeoStrategy Trade at an mNav Premium?
mNav stands for Market Cap to Net Asset Value. Strategy companies like Microstrategy trade at a premium to mNav because the market believes that they are not only as valuable as the net assets held on their balance sheet but that they will predictably accumulate more Bitcoin.
LeoStrategy is still so new. The market is still learning how to value it. During the initial sale, we progressed toward the end and accelerated - with 75% of the sale selling out in merely 1 week. Once the market started to learn how to value LSTR tokens, the sale was closed very quickly.
Since then, the value of LSTR tokens have risen 100% from ~$0.92 in initial sale to the current price of $1.97.
As LeoStrategy matures and we prove ourselves capable of generating accretive revenue which purchases more LEO and increases our LEO Per Share (LPS), we expect the market will start valuing not only the LEO we hold today but the velocity of our ability to accumulate LEO tomorrow.
LeoStrategy's First Product
LeoStrategy has a roadmap of plans on how to generate revenue that simply buys and permanently stakes LEO for sLEO on our balance sheet. This roadmap begins with 
This product allows users to:
- Delegate LEO POWER and earn daily passive income
- Earn in LEO or LSTR
- Earn daily LP upvotes if you hold LSTR (stake-weighted as well - hold more LSTR, earn bigger upvotes)
- Give out daily LP upvotes if you hold LSTR (stake-weighted - hold more LSTR, give bigger upvotes)
- Use onchain commands via Threads to control your settings + vote on content
Here's a sneak preview. We're expecting to launch this weekend:
The key to measuring our success is to track the LPS metric. How fast is LeoStrategy accumulating LEO per Share?
Using this metric, we can get a baseline on our net asset value and also add some speculation to project how much LEO will be held by LeoStrategy in the future.
Have a great weekend, we'll see you on launch day lions 🦁