Grant Cardone, a well-known figure in real estate, is shaking things up by combining real estate investments with bitcoin.

He just launched a new fund worth $88 million. This fund uses cash flow from properties to buy more bitcoin. “The response from our investors is phenomenal,” Cardone said, and he plans to roll out 10 more funds by June.

As the founder and CEO of Cardone Capital, which manages about $5 billion in real estate, Cardone is breaking new ground. He explained, “Nobody else has ever done this to scale. Nobody's ever done this particular model.”

He shared an interesting story about a friend who never invested in either real estate or bitcoin. After seeing the fund, this friend put in $15 million. That’s a big leap!

So, how does it all work?

For his first project, Cardone bought an apartment complex in Melbourne, Florida, for $72 million. He added another $15 million in bitcoin, making a total of $88 million. The plan is to use the cash flow from this property to buy bitcoin every month for the next four years.

If bitcoin, currently trading at $104,000, hits $158,000 in a year, the fund’s value will grow by 25%. If it reaches $251,000 in two years, that growth jumps to 61%. Cardone believes bitcoin could hit $1 million in five years.

He aims to launch 10 more projects by June, targeting a total investment of $1 billion. If his predictions hold true, Cardone Capital could have a bitcoin reserve worth hundreds of millions, all from real estate cash flow.

Inspired by Michael Saylor

With 30 years in real estate, Cardone has built a significant following. He has over 4.8 million followers on Instagram and 2.7 million on YouTube. Cardone Capital manages 15,000 units, with 6,000 owned by him and 9,000 crowdfunded from 18,400 investors. The firm distributes $80 million each year in dividends.

Cardone stated, “We don’t take institutional money.” He considers himself a risk-taker, but he believes he’s conservative compared to others in the blockchain space. “This is really a version of what he’s doing at MicroStrategy,” he noted, referring to Michael Saylor.

One major advantage of this real estate-bitcoin fund is that it allows for quicker capital raising. Investors are eager to join, and Cardone plans to issue corporate bonds for long-term, low-cost funding.

He also wants to set up combined mortgages for these projects. While bitcoin mortgage products don’t exist yet, Cardone expects that to change soon. “$700 million worth of real estate paid for with cash, $300 million worth of bitcoin, and no debt. Who wouldn't give me a loan for $500 million against that?” he asked.

He also mentioned the possibility of going public in 2026.

Cardone plans to buy bitcoin without focusing on price swings. He’ll purchase it within 72 hours of receiving monthly distributions. The firm will hold the cryptocurrency through an institutional custodian, not through ETFs.

When it comes to selling, he’s not in a rush. However, he does express concerns about the growing excitement around cryptocurrencies.

“At this point in my life, I can take this chance. I don’t need more cash flow,” Cardone said. “But if you're 25 and trying to build cash flow for life, bitcoin isn’t a solution. It’s a gamble, and you still need to pay rent and take care of your family.”

Author Information

Tom Carreras got into crypto in 2020 and is now a markets reporter for CoinDesk. He previously covered bitcoin ETFs, the Federal Reserve, and crypto adoption in Latin America. Carreras holds a degree in English literature from McGill University and lives in Costa Rica. He has investments in BTC, ETH, and SOL, exceeding CoinDesk's disclosure threshold of $1,000.