The core of a Strategy company being successful is centered around their ability to generate real revenue to purchase more of their treasury asset. Microstrategy doesn't really generate revenue. In fact, they operate at a loss every quarter.
Since Microstrategy is a publicly traded company, they have high overhead and this makes the bar for generating a profit to buy more BTC (without issuing new shares, ATMs, etc.) is quite high.
LeoStrategy on the other hand has very little-to-no overhead. Basically $0. This is a unique feature of the way its organized. Any product or service that generates profit autonomously is profit that goes directly to buying more LEO.
If they create a product that even generates just $1 per day, that is $1 added to the bottom line that can literally go out and buy LEO.
In this clip, I talk about how LeoStrategy differentiates itself from other Strategy companies like Microstrategy. Even if LeoStrategy can't do more capital raises, they're still adding LEO to their balance sheet because their other revenue generating products are constantly putting USD in the fund which is buying more LEO. This kicks the flywheel into high gear so that over long periods of time they CAN raise more capital.
Time is on LeoStrategy's side whereas for most companies, time is fighting against the fund's ability to acquire more of their treasury asset.
LeoStrategy put out an awesome blog post today talking about their flywheel which kind of picks up where the above clip leaves off. Feel free to read their post here: https://inleo.io/@leostrategy/how-leostrategy-engineers-volatility-to-create-profits-buy-more-leo-cts?referral=leostrategy
Posted Using INLEO
That's a great advantage on the part of LSTR compared to MSTR.
I love the idea of taking profits from market making and using it to buy up LEO to be used for sLEO..
It reminds me of another project that is taking yield from one product to spin up validators to earn somewhat guaranteed yield to keep the flywheel spinning more and more. these types of systems to really well long term
These strategic developments around the LEO token is showing that we are always ahead of the game.
Every Crypto community is seeing tht need for a strategy and it's already thriving with a small market cap token like LEO.
In a recent development, TON strategy is resuming a buyback and launching TON staking.
Cheers to Leostrategy
reinvesting in Leo