Cardone Capital Launches Hybrid Real Estate and Bitcoin Fund
Grant Cardone has launched a new investment model. It mixes a $235 million multifamily real estate deal with a $100 million Bitcoin position. Rental income from the property will be used to buy more Bitcoin. This creates a structure that blends a stable asset with a volatile digital currency.
The firm announced the new hybrid fund through Cardone Capital, which shared details about the property purchase and investment structure. The fund marks one of the most direct attempts to merge commercial real estate with long-term Bitcoin accumulation.
The strategy uses a simple idea. Real estate generates steady cash flow. Bitcoin offers asymmetric upside. Combining the two creates a system where rental payments fuel continuous Bitcoin purchases.
Cardone said this approach reflects a broader shift. More real estate firms are exploring ways to integrate Bitcoin exposure into traditional property funds. Many see this as a path to long-term appreciation without relying only on price swings.
How the Hybrid Model Works
Cardone Capital recently purchased its fifth commercial multifamily asset. It is a 366-unit property acquired for about $235 million. The fund paired this with a $100 million Bitcoin allocation. This amount will grow over time as rental income is funnelled into ongoing Bitcoin purchases.
Cardone described the model as a form of dollar-cost averaging. It means the property’s operational performance drives long-term digital asset accumulation. The goal is to let cash flow build a Bitcoin reserve. This creates a treasury backed by a physical asset with real tenants and real income.
He also said the fund could become a public vehicle. It would trade like a stock backed by both real estate and Bitcoin. He believes this mix provides stability. It also provides exposure to digital assets through a business with genuine revenue streams.
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Why Real Estate Is Being Linked to Bitcoin
Most crypto treasury companies do not generate operating cash flow. They raise debt. They raise equity. They buy Bitcoin. They wait for appreciation. This exposes them to risk. A downturn forces many to sell assets or shut down.
Cardone says real estate removes this weakness. Property is not optional. People must buy housing. This creates dependable demand. This demand creates rental income. The income supports Bitcoin accumulation without relying on debt.
He said the property is expected to generate about $10 million in net operating income each year. This entire amount will go towards more Bitcoin purchases. This builds long-term reserves with a predictable schedule.
The combination creates a model that traditional real estate groups could adopt. It could also shape future real estate investment trusts. These trusts, known as REITs, list on public markets and give investors exposure to physical property portfolios. Hybrid REITs could soon use cash flows to build digital asset holdings.
The Crypto Treasury Problem
Crypto treasury firms face structural vulnerabilities. They rely heavily on market performance. Their value is tied to the assets they hold. When the market drops, access to financing disappears.
During downturns, the multiple on net asset value collapses. When this multiple falls to one or below, companies cannot borrow. They must sell assets to service debt. This pushes prices lower. Companies become overleveraged. Some declare bankruptcy.
Cardone argues that real estate avoids this trap. Real tenants generate real income. This protects the treasury from market stress. It also supports a long-term Bitcoin strategy without depending on loans or speculative fundraising.
A Model That Could Reshape Property Investment
The Boca Raton multifamily property anchors the new fund. It provides predictable occupancy. It provides stable operating margins. It provides a foundation that can sustain regular Bitcoin purchases for many years.
Cardone believes the fund offers the best of both worlds. Real estate brings low volatility and tax advantages. Bitcoin brings long-term upside and global liquidity. Together they form a hybrid structure that reduces risk while seeking growth.
The model may inspire other firms. It shows how commercial property can support digital asset exposure. It also shows how a cash-flowing business can strengthen a Bitcoin-based treasury.
Cardone expects this strategy to become more common. He sees hybrid funds playing a major role in future real estate markets. He also believes investors will soon demand exposure to both physical and digital assets in the same vehicle.
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