Help me out here. The proceeds from the Ttsla sale won’t add to the LPS, right? The Leo bought will be used to collateralize
TTSLA. So in my mind, there will be a bunch of Leo used for the LPS, and another bunch for collateralization. Am I wrong ?
The proceeds will buy $LEO. The collateralization is a total. If there are 10 RWA stocks, valued at $3 million, and the total $LEO holdings in Leostrategy is $10 million, then we are looking at a 3.33 to 1 collateralization.
That is just an example but that is why the amount of LEO held along with the price of LEO increasing turns it into a positive feedback loop.
As LEO drifts higher, the ability to collateralize is greater.
yep just like MicroStrategy
There are no separate vault. 1 vault. 1 number: the total LEO on the balance sheet
interesting. I understood it the other way. But I’ll have to read. I thought it would add to LPS.
no they add to the LPS
All LEO held by leostrategy is held inside their perma-staked balance sheet
The same way that MicroStrategy has one number: the total BTC they hold
You look at the total LEO holdings vs obligations / collateral