RE: LeoThread 2025-08-16 20:43

"How does it make financial sense for LeoStrategy to take on Dividend obligations via the SURGE Offering?"

SURGE is offering 500,000 SURGE for ~$450,000 = obligation of $75,000 per year in dividend payments

1. If SURGE's entire presale sells out by next week, then we will have $75,000 in obligatory dividend payments over the next 12 months. We set aside $37,500 of the ~$450,000 in capital from SURGE presale
2. Leaves $412,500 in cash to purchase LEO. At a current price of $0.19 = 2,171,052.63 $LEO
3. If LEO appreciates by a bare minimum of 20% per year, this would yield a $82,500 per year increase in fund value just based on the LEO bought using the SURGE presale

This does not include yield on the LEO that is bought and staked on LeoDex (~36,500-$73,000 per year), market making, ATM, etc.

In short, the opportunity of purchasing ~2M LEO while it is cheap and permanently holding it on our balance sheet is far greater than the $75,000 in potential dividend obligations.