00:00 Speaker A
How are you integrating crypto into your operations?
00:07 Speaker B
Certainly! We currently possess 15,000 units and I’ve been discreetly investing in Bitcoin for approximately 13 years. I’ve participated in discussions where individuals debated the merits of various investments, such as real estate, Bitcoin, and stocks. Each time I heard these debates, I thought, what if I could merge all three? What if the real estate investment funded my Bitcoin? Subsequently, I could potentially take the entire venture public. This year, we launched the first project of its kind. We acquired an $88 million property for just $72 million during a market correction. This particular asset is located in Daytona, near the SpaceX launch site. It was supposed to sell for $88 million, but due to issues in the debt market, we secured it for $72 million. Instead of merely acquiring the real estate, I chose to invest an additional $15 million in Bitcoin at the time of purchase. So, to break it down, I bought the property for $72 million, paid $15 million in cash for the Bitcoin, and combined these assets into a fund. I approached my audience, presenting them with an $88 million fund, offering them the option to participate or not. The response was phenomenal—people who had never invested in real estate or Bitcoin were eager to engage with this innovative combination. The property is debt-free, and so is the Bitcoin. Therefore, it generates approximately $350,000 in cash flow each month. With that cash flow, we’re able to purchase more Bitcoin. This month, for instance, we’ll buy 4.125 Bitcoin at an $80,000 price point from the real estate’s cash flow. Four years down the line, I will still hold the real estate. If we estimate the real estate’s value is still at $88 million in four years—meaning it hasn’t appreciated or decreased from its current price—and assuming it has returned to its rightful value by 2025, I’ll own $29 million worth of Bitcoin at previous prices after four years. So, should I decide to sell the real estate, let’s say you and I are partners in this deal. I would return your $44 million investment, I would take my $44 million, and we could then split $29 million in Bitcoin at yesterday’s prices that we acquired without direct purchase. What’s superior to just real estate or Bitcoin? The real advantage lies in extracting Bitcoin from my real estate investment. I plan to execute 10 of these transactions; we’ve already completed four. I’m set to bring 10 of these bids to the public markets by the end of this year or early next year, and we’re gearing up to ring the bell and convert it into a tradable asset.
