Cardone Capital Blends Bitcoin and Bricks & Mortar
Cardone Capital, a real estate investment firm managing over $5 billion in assets, has made a bold move into the crypto space with its latest venture: the 10X Miami River Bitcoin Fund. This isn’t your typical real estate fund. It’s a dual-asset vehicle, pairing a 346-unit multifamily property situated on the Miami River with a hefty $15 million Bitcoin (BTC) allocation.
This innovative fund represents Cardone Capital‘s fourth foray into blending BTC with commercial real estate. It marks a strategic move to capitalize on the growing interest in digital assets within the real estate sector. The fund‘s unique structure aims to attract both seasoned investors and newcomers to the world of Bitcoin.
A Bold Strategy: Converting Cash Flow to Bitcoin
Grant Cardone, founder and CEO of Cardone Capital, revealed in an interview with Cointelegraph that the fund will dedicate a portion of its monthly cash flows to buying more Bitcoin. This strategy stems from a revelation shared by Cardone’s brother, who highlighted the staggering potential gains of converting real estate cash flow into Bitcoin over the past decade. Cardone emphasized that this realization spurred him to create a fund that seamlessly integrates Bitcoin into the traditional real estate investment landscape.
“My brother said to me, you should look at if you would have converted all your cash flow from real estate to Bitcoin and what that would have done over the last 12 years. Well, it would have taken $160 million and turned it into around $3 billion.”
Cardone’s vision for this fund extends beyond mere investment returns. He envisions it as a bridge, connecting traditional investors with the world of Bitcoin, a world often perceived as complex and intimidating to those unfamiliar with the technology.
Onboarding Investors and Tenants to Bitcoin
Cardone Capital aims to make Bitcoin accessible to a wider audience. This includes both investors and tenants who may be hesitant to directly engage with the digital asset. The fund‘s strategy is rooted in the concept of “onboarding” through familiarity. By presenting Bitcoin as part of a familiar real estate investment, the firm hopes to alleviate apprehension and introduce investors to the potential benefits of digital assets.
Cardone Capital is even considering a rewards program for long-term tenants, providing incentives in Satoshis for timely rent payments and good renter behavior. This initiative aims to further normalize Bitcoin adoption within the rental market, gradually integrating it into daily transactions.
Disrupting the Traditional Real Estate Investment Landscape
The 10X Miami River Bitcoin Fund‘s unique approach could potentially disrupt the established order of real estate investment vehicles. Traditional Real Estate Investment Trusts (REITs) and other traditional investment products may face increased competition as this innovative fund offers investors an appealing alternative. The combination of income-producing real estate with Bitcoin‘s store-of-value potential presents a compelling proposition for investors seeking both stability and growth.
Cardone Capital‘s ambitious goal is to accumulate a $1 billion real estate portfolio and a $200 million BTC treasury across its hybrid funds. This signifies their commitment to expanding the reach of Bitcoin and establishing it as a core element of their investment strategy.
The launch of the 10X Miami River Bitcoin Fund is a clear indication that the intersection of real estate and crypto is gaining momentum. As the crypto space continues to evolve, innovative investment strategies like this one are poised to reshape traditional industries and unlock new opportunities for investors.
