Bitcoin & Real EstateInvestment Fund
Sophisticated investment strategy combining IBIT ETF exposure with leveraged real estate acquisitions. Monetizing digital assets for tangible property investments through innovative margin deployment.
Executive Summary
Real Bit operates as a sophisticated investment fund combining Bitcoin exposure through the iShares Bitcoin Trust (IBIT) ETF with strategic real estate acquisitions, utilizing an innovative leverage model that monetizes digital assets for tangible property investments.
Our current treasury holds 15 BTC (≈$1.56M at $104,000/BTC baseline), positioned to capture Bitcoin's projected 25% CAGR while systematically deploying up to 40% of IBIT value as collateral for buy-to-rent residential and mixed-use properties.
Unique Value Proposition
- •IBIT-backed leverage creates capital efficiency for real estate deployment
- •Sequential project scaling (25% larger each acquisition) ensures disciplined growth
- •Covered call overlay generates additional yield (13% on 10% of holdings annually)
- •Non-recourse financing (≤60% LTV at ≤3.5% fixed) limits downside risk
Current Fund Position
15-Year Performance Targets
Risk Mitigation Framework
Market Analysis & Investment Methodology
Bitcoin via IBIT ETF
Institutional-Grade Exposure
IBIT ETF Advantages
- •No Custody Risk: Professional institutional management
- •Marginable Asset: Enables leverage for real estate deployment
- •Options Overlay: Covered call strategies for additional yield
- •Regulatory Clarity: SEC-approved investment vehicle
Real Estate Strategy
Buy-to-Rent Portfolio
Investment Criteria
- •Residential Focus: Buy-to-rent and mixed-use properties
- •Sequential Scaling: Each project 25% larger than predecessor
- •Value-Add Opportunities: Short-cycle renovation for yield appreciation
- •Cash Flow Priority: Net proceeds reduce margin debt
Fund Mechanics & Risk Controls
Maximum Leverage
Conservative margin utilization maintains safety buffer and preserves upside participation
Options Premium Yield
Annual covered calls on 10% of IBIT holdings generate additional income and reduce margin debt
Project Scaling
Disciplined growth with each successive real estate acquisition 25% larger than predecessor
Fund Valuation Methodology
Bitcoin/IBIT Component
Real Estate Component
Total Fund Valuation
(IBIT NAV × 1.20) + (Stabilized RE Value / 6.5%)
Comprehensive Financial Projections
Key Fund Parameters & Assumptions
Bitcoin Foundation
- • Baseline: $104,000/BTC (June 2025)
- • Growth: 25% CAGR
- • Holdings: 15 BTC via IBIT ETF
- • Initial Value: $1.56M
Real Estate Strategy
- • Buy-to-rent residential/mixed-use
- • Leverage: Up to 40% of IBIT value
- • Financing: ≤60% at ≤3.5% fixed
- • Trigger: $2.5M IBIT value
Risk Management
- • Covered calls on 10% of IBIT
- • 25% strike premium, 13% yield
- • Sequential 25% project scaling
- • Annual dilution ≤20%
5-Year Target (2030)
10-Year Target (2035)
15-Year Target (2040)
Detailed Annual Projections
| Year | BTC Price | IBIT Value | RE Portfolio | Total AUM | Cash Flow | Status |
|---|---|---|---|---|---|---|
| 2025 | $104,000 | $1.56M | $0.00M | $1.56M | $0K | Initial Position: 15 BTC via IBIT ETF |
| 2026 | $130,000 | $1.95M | $0.00M | $1.95M | $25K | Pre-trigger phase, covered call strategy initiated |
| 2027 | $162,500 | $2.44M | $0.00M | $2.44M | $32K | Approaching $2.5M trigger for first property |
| 2028 | $203,125 | $3.05M | $3.05M | $4.88M | $125K | First Property: $3.05M mixed-use residential |
| 2029 | $253,906 | $3.81M | $6.86M | $9.14M | $285K | Second Property: $3.81M portfolio expansion |
| 2030 | $317,383 | $4.76M | $12.45M | $15.31M | $475K | 5-Year Mark: 3 properties, diversified portfolio |
| 2035 | $976,196 | $14.64M | $45.00M | $53.79M | $1850K | 10-Year Mark: Major institutional presence |
| 2040 | $3,005,737 | $45.09M | $180.00M | $207.05M | $8200K | 15-Year Mark: Market-leading Bitcoin-RE fund |
Strategic Milestones Timeline
First Property Acquisition
$3.05M mixed-use residential property
5-Year Portfolio Target
3 properties, proven track record
Institutional Scale
Multi-property portfolio, $50M+ AUM
Market Leadership
Premier Bitcoin-Real Estate fund
Risk Management & Compliance
Bitcoin-Specific Risks
- •Volatility: Bitcoin price can experience significant short-term fluctuations
- •Regulatory: Evolving regulatory landscape may impact Bitcoin value and trading
- •Technology: Potential technical issues or security breaches in the Bitcoin network
- •Custody: Risks associated with digital asset storage and key management
Real Estate Risks
- •Market Risk: Property values may decline due to economic conditions
- •Liquidity: Real estate investments may be difficult to sell quickly
- •Interest Rate: Rising rates may negatively impact property values
- •Operational: Property management and maintenance cost overruns
Risk Mitigation Framework
Portfolio Diversification
Balanced 60/40 allocation reduces single-asset concentration risk
Dynamic Rebalancing
Quarterly rebalancing to maintain target allocations and capture volatility
Professional Management
Experienced team with deep expertise in both asset classes
Institutional Partners
Best-in-class custody, prime brokerage, and property management partners
Compliance & Governance
Stress Test Scenarios
2008 Crisis Scenario
Real estate down 40%, Bitcoin correlation increases temporarily
Crypto Winter
Bitcoin down 80%, real estate provides stability
High Inflation
Both assets benefit from inflation protection characteristics