Before analyzing BSTR, we need to understand several other concepts. 1. What is $WLFI? World Liberty Financial (which has strong Trump family genes) invested $220 million to purchase crypto assets (such as BTC, ETH, AAVE, LINK, TRX) as strategic reserves, which currently have increased in value to approximately $350 million. WLFI is the governance and utility token of World Liberty Financial. From September 2024 to August 2025, WLFI raised $550 million through a token sale (with early subscription prices at $0.015 and $0.05) and plans to list in late August to September 2025. Its ecosystem integrates USD1 stablecoin and Aave V3, supporting lending, staking, and governance, positioned as a decentralized finance (DeFi) platform. 2. Regarding the valuation analysis of $WLFI, let's first talk about a recent event. ALT5 Sigma announced it would raise $1.5 billion by issuing 200 million shares at $7.50 per share to purchase WLFI tokens and establish a company asset reserve strategy centered on WLFI. The transaction is divided into two parts: (1) public directed issuance: 100 million shares sold for cash, raising $750 million. (2) Private placement: 100 million shares paid for in WLFI tokens, valued at $750 million. After the transaction, ALT5 will hold 7.5% of the total supply of WLFI. According to the terms of the transaction, the over-the-counter trading price of WLFI tokens is set at $0.20, implying that WLFI's fully diluted valuation (FDV) at that time is around $20 billion. Similarly, for DEFI platform projects, more representative older projects have FDVs of $22 billion for $LINK and $11 billion for $UNI (data from coinmarketcap.com on August 15). Therefore, although there are various opinions online about the valuation of $WLFI, I will use $20 billion as the benchmark value to develop the following content. I believe this is a relatively conservative valuation, with the actual over-the-counter price being higher. Next, we introduce the protagonist of today, $BSTRBigStrategy Inc. (BSTR), positioned as an “on-chain micro-strategy” reserve token, aims to accumulate and manage key assets within the USD1 ecosystem through decentralized finance (DeFi) mechanisms. BSTR's reserve funds are invested in the top 50 performing crypto assets in the USD1 ecosystem (USD1-50 Index), including WLFI, Liberty, EGL1, UNIART, W, U, and other tokens. Its core goal is to build a diversified asset portfolio through dynamic investment and reserve management, enhancing the balance sheet value of BigStrategy Inc., while creating long-term value for BSTR token holders. BSTR has two key mechanisms: • Reserve appreciation mechanism: Whenever BSTR's market capitalization increases by $5 million, the protocol injects $100,000 USD1 into the reserve pool to purchase tokens from the USD1-50 Index, similar to a regular capital increase for a fund. The appreciation of reserve assets directly supports the long-term value of BSTR tokens, akin to how a fund generates returns for investors through asset appreciation. • Buyback and burn: When BSTR's price closes down more than 10% weekly, the protocol uses 10% of the reserve funds to buy back and burn BSTR, reducing circulation to support the price, similar to how a fund stabilizes market value through stock buybacks. According to an official post on August 16, BSTR has accumulated over 3,999,860 $WLFI, $3,000 worth of $EGL1, and $2,000 worth of $U. As can be seen, BSTR's NAV highly depends on WLFI's performance, at least for now, and it has not yet demonstrated the positioning of the USD1-50 fund (having only purchased 3 tokens in total). Therefore, BSTR can be understood as an over-the-counter fund investing in WLFI; if you are optimistic about Trump's WLFI, you may consider buying BSTR. In the future, BSTR will be the micro-strategy for WLFI + USD1-50 index. So, how is BSTR's valuation calculated? Micro-strategy companies usually have a premium, ranging from 5 to 20 times. Considering (1) its own buyback and burn mechanism, (2) the value of its already reserved assets (net assets), and (3) the good valuation of WLFI's listing price in the over-the-counter market, the minimum price for over-the-counter trading on August 17 was $0.44. Therefore, BSTR's current asset valuation of $2 million is completely acceptable. Combined with the general premium of micro-strategy companies, BSTR's market value of $4 million is actually very attractive. However, I will not increase my position. My current cost price is at a market value of $10 million. This is because on the 14th, there was an instantaneous drop of about 10 times for BSTR, which was then pulled back. The project party explained that the *** reason from the MX exchange caused it, but it has almost lost all investor trust, and at the same time, the price continues to decline from about $11 million market value to the current $4 million market value. In summary, although the current price is very attractive to me, due to the potential unethical behavior of the project party selling its own tokens to purchase WLFI, in order to control risks, I will not increase my position as an existing holder. However, if I were someone without a position, I would definitely buy in! This is the reason I haven't liquidated my position.