Some time ago I bought a big chunk of LEO mega miners. I wrote about this before but I want to share a bit more detailed my reasoning and my calculations. Maybe it turns out I have a big brain fart and nothing is true.
I dont remember the actual the amount but it was somewhat 3500 miners and was around 21k Steem.
I want to build a big stake in the Leo community.
Stake right away
I am not smart enough and/or way to lazy to get the numbers 100% precise and that is good enough for me.
With my miners I get somewhat between 130 to 180 LEO day so I took the 150 daily and 4500 LEO monthly as an average.
This can change a lot as there are still a lot of normal miners on the market which cuts into my earnings the more get staked.
I used 10% interest for the curation rewards.
As you can see it takes roughly 26 months till the miners are on par with just buying Leo from the market.
One big difference was that there was no averaging in. You were able to buy miners from the market under the issue price of 6 Steem but not in the quantity I was looking for.
If you want to buy 105000 LEO without driving the price up significantly you better calculate in some time. If you in a hurry you better calculate in a huge premium which made the miners the more attractive option for me.
So the miners were a good way to get a lot of Steem into the LEO ecosystem quick.
If you have a timeframe over 2 years the miners were the better choice.
But the biggest advantage for the miners is the following.
After buying the stake and the miners result in the same LEO stake, I still have the miners. While the liquidity is not very high I could still power them down and sell them even if I would sell them to the price I bought them my LEO stake would be "free" (of course there is opportunity cost and no curation rewards I would have made while just working with the Steem I put into it the first place).
Both have up and downsides depending on your time horizon and what stake you are looking for to put into it.
The longer your gameplan is the better the miners are. The more Steem you want to move into LEO the better the miners are.
But as this many miners are still on the market it is of course not risk free and it might take longer but that you end up with 2 assets, even when they are highly correlated ( if LEO would go down tomorrow both would be worthless )I like the chances on that gamble more.