Cardone Capital has announced a significant investment, acquiring $10 million worth of Bitcoin and increasing its total holdings to approximately 1,000 BTC. This strategic move is part of a long-term plan to allocate capital towards digital assets, funded by the consistent rental income generated from the firm's multi-family properties.
Strategic Bitcoin Accumulation
The firm's latest Bitcoin purchase is being funded through a systematic dollar-cost-averaging strategy, utilizing cash flow derived from its real estate portfolio. Notably, Cardone Capital is directing rental income from properties, including a substantial 366-unit apartment complex located in Boca Raton, towards Bitcoin acquisitions. This approach bypasses traditional uses of rental proceeds such as distributing profits to investors or acquiring new properties.
Long-Term Investment Goals
According to CEO Grant Cardone, the company has set ambitious targets for its Bitcoin holdings. The immediate objective is to accumulate 3,000 BTC by the end of 2026. Looking further ahead, Cardone Capital aims to reach a total of 10,000 BTC, distributed across various investment vehicles.
To facilitate this long-term strategy, Cardone Capital is planning to launch an initial public offering (IPO) in 2026 for a dedicated entity designed to serve as a corporate Bitcoin treasury. This entity is intended to be backed by the firm's real estate income, with plans to use ongoing rental revenues and potential real estate depreciation benefits to support continuous Bitcoin accumulation.
Integrating Real Estate and Digital Assets
With several billion dollars in assets under management, Cardone Capital views Bitcoin as a strategic long-term reserve asset that complements its established real estate operations and their associated cash flow streams. The company's stated approach seeks to combine the stability of recurring income from real estate with the potential growth of Bitcoin.
This investment strategy aligns with a broader trend observed among some institutional investors who are incorporating Bitcoin into diversified portfolios alongside traditional asset classes, rather than solely as a standalone speculative investment.