RE: Why Buy $LSTR?
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The toughest part is the initial cap raise
While LSTR has this sell wall, price is static. That being said, it’s a limited wall. It will go down eventually. The question is when
When it does go down, the market can price LSTR. It will do so at some level of mNav Premium (IMO) as buying 1 LSTR is - at the most basic fundamental level - purchasing:
- The LEO owned by the LSTR fund as a whole
- The work that goes into earning more LEO (Post rewards for LeoStrategy, USDC rewards they are auto compounded into more sLEO, and bridging revenue)
So from a fundamental basis, the value of LSTR is at the very least 1:1 with the LEO it holds. Then you have to value the incoming revenue / capital raises that can purchase more LEO with both inflows and leverage.
This is where things get tougher without the open market at play. Once we have that open market (because the sell wall is sold out), the real value of LSTR will be a lot clearer.
TLDR; Buying 1 LSTR is buying the LEO mNav value + the proprietary ability of the fund to generate revenue and buy more LEO.