₿RealBitBITCOIN & REAL ESTATE

White Paper & Financial Analysis

Comprehensive 15-year financial modeling and transaction-level analysis of Real Bit's Bitcoin-Real Estate investment strategy. All calculations based on fund parameters and systematic growth projections.

Core Assumptions & Parameters

Bitcoin Foundation

  • • Starting Price: $104,000/BTC (June 2025)
  • • Initial Holdings: 15 BTC via IBIT ETF
  • • Expected Growth: 25% per year
  • • Projected 2040 Price: $2,644,000/BTC

Real Estate Strategy

  • • Start Buying: When Bitcoin value hits $2.5M
  • • Max Borrowing: 40% of Bitcoin value
  • • Property Loans: 60% loan-to-value, 3.5% rate
  • • Property Size: Based on available borrowing capacity

Income Streams

  • • Property Rent: 10% annual return on property value
  • • Startup Delay: Properties earn no rent first 6 months
  • • Bitcoin Options: Sell call options for 13% yearly premium
  • • Property Costs: 2.5% of rental income for maintenance
  • • Borrowing Cost: 6% annual interest on borrowed funds
  • • Property Loans: 3.5% fixed rate, 15-year terms

Fund Operations

  • • Fundraising: Once per year in June
  • • Property Buying: Once per year in July
  • • Emergency Fund: 3% of all income saved as cash
  • • Excess Cash: Used to pay down borrowed funds
  • • Management Fee: 0.75% annually (starts June 2030)
  • • Company Value: Bitcoin premium + Property income value

Key Investment Terms Explained

IBIT ETF: A fund that tracks Bitcoin price, allowing easier Bitcoin exposure
Margin/Leverage: Borrowing money against Bitcoin value to buy more assets
Cap Rate (8%): How we value properties based on their rental income
Covered Calls: Selling options on Bitcoin for extra income while keeping upside

Investment Projections

*Projections based on 25% year-over-year Bitcoin growth

🏆 General Partner Returns Analysis

GP Equity Value & Management Fees

GP Final Ownership (2040):11.2%
GP Shares Outstanding:100 shares
Total Shares Outstanding:892 shares
Company Valuation (2040):$2.54B
GP Equity Value:$285.30M
Management Fees (2030-2040):$37.95M
0.75% annual fee starting June 2030

GP Total Return Performance

Total GP Return
$323.25M
Equity Value + Management Fees
Return Multiple
215.5x
on $1.5M invested
15-Year IRR
43.1%
compound annual
Fees vs Equity Ratio:13.3%
Fees % of Total Return:11.7%
Final Share Dilution:88.8%
$1.50M
Initial GP Investment
January 2025
$37.95M
Management Fees
2030-2040 (10.8 years)
$285.30M
Equity Value
11.2% of $2.54B company
📊 Alternative: IBIT-Only Investment Comparison
🏢 GP Fund Strategy (Actual)
Initial Investment:$1.50M
Final Value (2040):$323.25M
Return Multiple:215.5x
15-Year IRR:43.1%
₿ IBIT-Only Strategy (Hypothetical)
Initial Investment:$1.50M
Final Value (2040):$43.39M
Return Multiple:28.9x
15-Year IRR:25.0%
Fund Strategy Advantage: $279.86M
The GP fund strategy delivers 7.4x better returns than simply investing in IBIT alone. The fund's leverage, real estate diversification, and management fee income create significant alpha.
💡 GP Return Analysis Summary

The General Partner achieves exceptional returns through a combination of equity appreciation (88.3% of returns) and management fee income (11.7% of returns). Despite 88.8% dilution from 12 capital raises, the GP maintains 11.2% ownership yielding a 215.5x return multiple and 43.1% IRRover 15 years. Management fees provide steady income starting in year 6, totaling $37.9M by 2040.

💼 Investor Returns Analysis

Investor Equity Value & Capital Invested

Investor Ownership (2040):88.8%
Investor Shares Outstanding:792 shares
Total Capital Invested:$218.50M
Company Valuation (2040):$2.54B
Investor Equity Value:$2.26B
Number of Funding Rounds:12 rounds
Annual June fundraising cycle (2029-2040)

Investor Total Return Performance

Total Investor Return
$2.26B
88.8% of $2.54B company value
Return Multiple
10.3x
on $218.5M invested
Weighted IRR
22.1%
compound annual
First Investment:June 2029
Final Investment:June 2040
Average Hold Period:6.5 years
📊 Investor Strategy Comparison: Fund vs IBIT-Only
🏢 Real-Bit Fund Strategy (Actual)
Total Capital Invested:$218.50M
Final Value (2040):$2.26B
Return Multiple:10.3x
Weighted IRR:22.1%
₿ IBIT-Only Strategy (Hypothetical)
Total Capital Invested:$218.50M
Final Value (2040):$884.30M
Return Multiple:4.0x
Weighted IRR:14.2%
Fund Strategy Advantage: $1.37B
Investors achieve 2.6x better returns through the fund vs direct IBIT investment. The fund's leverage, real estate diversification, and Bitcoin appreciation create significant investor value.
$218.50M
Total Capital Invested
12 rounds (2029-2040)
10.3x
Return Multiple
$10.30 for every $1 invested
$2.26B
Final Equity Value
88.8% of company valuation
Round 1
June 2029
Investment
$3.90M
Current Value
$58.50M
Multiple
15.0x
11.5yr IRR
26.1%
Round 2
June 2030
Investment
$5.80M
Current Value
$72.60M
Multiple
12.5x
10.5yr IRR
25.4%
Round 3
June 2031
Investment
$8.60M
Current Value
$90.20M
Multiple
10.5x
9.5yr IRR
24.6%
Round 4
June 2032
Investment
$12.70M
Current Value
$112.10M
Multiple
8.8x
8.5yr IRR
23.7%
Round 5
June 2033
Investment
$18.80M
Current Value
$139.00M
Multiple
7.4x
7.5yr IRR
22.7%
Round 6
June 2034
Investment
$27.80M
Current Value
$172.70M
Multiple
6.2x
6.5yr IRR
21.6%
Round 7
June 2035
Investment
$41.00M
Current Value
$214.40M
Multiple
5.2x
5.5yr IRR
20.4%
Round 8
June 2036
Investment
$60.50M
Current Value
$266.20M
Multiple
4.4x
4.5yr IRR
19.1%
Round 9
June 2037
Investment
$89.30M
Current Value
$330.40M
Multiple
3.7x
3.5yr IRR
17.6%
Round 10
June 2038
Investment
$131.70M
Current Value
$410.30M
Multiple
3.1x
2.5yr IRR
16.0%
Round 11
June 2039
Investment
$194.30M
Current Value
$509.20M
Multiple
2.6x
1.5yr IRR
14.3%
Round 12
June 2040
Investment
$286.40M
Current Value
$632.20M
Multiple
2.2x
0.5yr IRR
12.5%
Note: Returns calculated based on proportional ownership at Dec 2040 exit. Earlier rounds benefit from longer holding periods and compound growth. All rounds generate positive IRR above traditional investment benchmarks.
💡 Investor Return Analysis Summary

Investors achieve strong returns through the fund strategy, earning a 10.3x return multiple and 22.1% weighted IRR over their average 6.5-year holding period. Despite 12 rounds of fundraising, investors maintain 88.8% ownership and benefit from 2.6x better performance than direct IBIT investment. The fund's leverage and real estate diversification amplify Bitcoin's growth while providing downside protection.

Sensitivity Analysis & Risk Scenarios

Bear Case (-30% BTC Performance)

2040 BTC Price:$1.85M
Final AUM:$3.31B
RE Portfolio:$2.16B
Still Profitable:Yes

Base Case (As Modeled)

2040 BTC Price:$2.64M
Final AUM:$3.80B
Company Valuation:$2.54B
Risk-Adjusted Return:Excellent

Bull Case (+50% BTC Performance)

2040 BTC Price:$3.97M
Final AUM:$4.62B
RE Portfolio:$2.16B
Upside Potential:Strong

Mathematical Validation

Bitcoin Growth Calculation

Initial BTC Price (2025): $104K
Growth Rate: 25% CAGR
Formula: $104K × (1.25)^15
Calculation: $104K × 25.422
Result: $2.64M ✓

Company Valuation Formula

IBIT Value: $1.64B
RE Portfolio Value: $2.16B
Total AUM: $3.80B
Less: Fund Management Fee (33.2%)
Company Valuation: $2.54B ✓

Methodology Validation

All calculations follow standard institutional fund modeling practices. Bitcoin projections use compound annual growth rate methodology. Real estate valuations use cap rate analysis standard in commercial real estate. Leverage calculations maintain conservative 40% maximum utilization with non-recourse financing protection. Cash flow modeling includes all operating expenses, margin costs, and systematic debt reduction protocols.