Grant Cardone is promoting a novel investment strategy that merges real estate with cryptocurrency. This initiative coincides with U.S. President Donald Trump's proposed policies aimed at enhancing housing affordability and increasing supply. Cardone asserts that the current economic climate presents an ideal opportunity to combine steady cash flow with Bitcoin's inherent volatility and liquidity, thereby creating a secure investment.
Cardone Capital's Hybrid Investment Model
Cardone Capital introduced this investment model in December 2024, with Grant Cardone expressing confidence that it offers the advantages of both asset classes. Real estate contributes stability and tax benefits, while Bitcoin provides potential for long-term appreciation and global accessibility. This hybrid structure is designed to mitigate risk while pursuing capital growth.
According to Grant Cardone, a traditional real estate investment yielding an annual return of 12% to 14% could potentially generate 35% annually when combined with this hybrid approach.
Strategic Allocation of Crypto Assets
Cardone's strategy aims for crypto to constitute between 15% and 50% of the fund's total assets. He contrasts this with many crypto treasury companies that do not generate operating cash flow and instead rely on debt to acquire Bitcoin, exposing them to significant risk during market downturns. Such a situation can necessitate asset sales or even business closure.
Cardone posits that real estate mitigates this vulnerability. He highlights that housing is a fundamental necessity, ensuring consistent demand and, consequently, rental income. This rental income stream is intended to support Bitcoin accumulation without the need for debt financing.
He further stated that the real estate holdings are projected to generate approximately $10 million in net operating income annually. This entire sum is slated for reinvestment into Bitcoin purchases, thereby building long-term reserves on a predictable schedule.
Cardone Capital's website indicates that Grant Cardone intends to establish 10 such funds, combining 10,000 BTC with 15,000 apartment units. To date, three of these planned Bitcoin and real estate funds have been launched: the 10X Space Coast Bitcoin Fund, the 10X Miami River Fund, and the 10X Boca Raton Bitcoin Fund.
The 10X Space Coast Bitcoin Fund, launched in December 2024, and the 10X Miami River Fund, launched in May, have both reportedly been oversubscribed. The 10X Space Coast Bitcoin Fund integrated 300 apartment units in Melbourne, Florida, with $15 million worth of Bitcoin. The 10X Miami River Fund combined 346 apartments along the Miami River in South Florida with assets valued at $300 million. The 10X Boca Raton Bitcoin Fund is planned to combine $100 million with 366 apartment units.
Cardone has continued to acquire Bitcoin despite recent price fluctuations. He announced that the fund had purchased an additional $72 million worth of Bitcoin during October and November. Last month, Cardone publicly demonstrated his commitment by displaying the Bitcoin logo on the underside of his private jet.
Trump's Housing Market Proposals
The Trump administration is preparing to enact several measures designed to improve homeownership accessibility and reduce housing costs. A significant proposal, anticipated for formal unveiling at the World Economic Forum in Davos, would permit individuals to utilize funds from their 401(k) retirement accounts for down payments on homes.
Trump has also publicly advocated for restrictions on large institutional investors purchasing single-family homes, arguing that such corporate acquisitions reduce availability for individual buyers.
The President has indicated an intention to request Congress to legislate such a prohibition. However, specific details regarding its implementation and operational framework are yet to be finalized.
The administration has also pursued more conventional housing market policies, including directing Fannie Mae and Freddie Mac to acquire up to $200 billion in mortgage-backed securities. This action aims to lower mortgage rates and support refinancing activities. Current mortgage rates stand at 6.06% for a 30-year fixed loan and 5.38% for a 15-year fixed loan.
Grant Cardone has expressed support for President Trump's initiatives, stating, "President Trump and the administration is very aggressively looking at how the American people can have money and financial systems stable and doing well for them both in tokens and Bitcoin [….] and also in housing."