Risk is mispriced because the market believes Bitcoin is risker than real estate.

In reality, Strategy is far more solvent than the two real estate investment companies that are directly ahead and behind of Strategy in the market cap ranking.

The old risk paradigm is WRONG.

Traditional finance treats:

Real estate as a “safe, cash-flowing asset,” and

Bitcoin as a “volatile speculative instrument.”

This mental model is 70 years out of date.

The balance sheet of Strategy (MSTR) proves this unequivocally.

While Realty Income (O) and Digital Realty (DLR) carry massive, immobile, interest-rate-sensitive liabilities, Strategy sits on:

✔ 650,000 BTC
✔ $60+ billion in liquid reserves
✔ 75 years of dividend coverage in Bitcoin
✔ 21 months of USD dividend coverage
✔ Only ~$8.2B in debt
✔ Net leverage of 11%**

This is not the profile of a “junk-rated” entity.

This is the profile of the most over-collateralized, over-reserved corporate balance sheet in modern history.

And the two real estate companies, Realty Income and Digital Realty, despite their investment-grade ratings, are structurally leveraged to:

Rising rates
Tenant concentration
Property devaluations
Refinancing risk
Credit market liquidity
Localized downturns
Natural disasters
Physical degradation of assets
Lease renegotiation pressure

Bitcoin experiences NONE of these risks.

Solvency Comparison:

Strategy vs Realty Income vs Digital Realty

Strategy (MSTR)

BTC Reserve: ~$60.3B
Debt: $8.24B
Preferred: ~$7.8B

BTC Years of Dividend Coverage: 74.7
USD Months of Dividend Coverage: 21.4
Net Leverage: 11%

Bitcoin trades 24/7, settles instantly, has global liquidity, and cannot default.

This means Strategy’s reserves:

Cannot be impaired by counterparties
Cannot be seized
Cannot be frozen
Cannot be refinanced at higher rates
Cannot degrade
Cannot have “vacancy risk”
Cannot experience non-paying tenants
Cannot require maintenance
Cannot collapse from supply-demand imbalances
Cannot be politically taxed away through local property regimes

In terms of pure solvency, Strategy is in an ENTIRELY DIFFERENT CLASS.

Realty Income (O)

Credit rating: A- / A3 / BBB+
Debt: ~$29B
Leverage: ~5.4× EBITDA
Assets: Physical real estate
Cash reserves: Low relative to liabilities
Market cap: ~$53B

Despite being “safe,” Realty Income:

Must refinance billions every few years
Is at the mercy of interest rates
Has tenants who can default
Owns properties that can decline in value
Has operating overhead
Must maintain, repair, modernize buildings
Cannot liquidate its assets without massive frictional costs
Is geographically concentrated
Operates in a structurally fragile, rate-sensitive sector

Real estate is NOT LIQUID and NOT COUNTERPARTY-FREE.

It is one of the most interest-rate-sensitive industries in the world, which is why rising yields crushed REIT valuations in 2022–2024.

Despite an A- rating, its solvency is absolutely inferior to Strategy’s.

Realty Income has:

High absolute debt
High net debt
Refinancing exposure
Rate sensitivity
Long-dated interest commitments
Immobile collateral
Tenant-linked cashflow dependency

Strategy has:

Debt < 1/7th of reserve value
No refinancing cliff risk
No dependence on operating cashflow
Liquid collateral that trades like money

This is why the “B- rating” is nonsensical.

It imports old-world metrics that do not apply to Bitcoin.