Cardone Capital, led by Grant Cardone, announced plans to acquire over 1,000 Bitcoin (BTC) as part of its investment strategy, according to multiple sources from late April 2025. This move involves using profits from its real estate ventures to fund the purchase, signaling a strategic shift to diversify its $5 billion asset portfolio into cryptocurrencies.
The announcement, highlighted in posts on X and web reports, is seen as a bullish signal for Bitcoin, with potential to increase institutional demand and drive price volatility. For instance, trading volume on Binance’s BTC/USDT pair surged 18% to $1.2 billion shortly after the news on April 29, 2025, indicating market optimism.
Cardone’s strategy includes integrating Bitcoin with real estate cash flow, as seen in their 10X Space Coast Bitcoin Fund, which combines multifamily properties with BTC purchases to enhance returns while mitigating volatility. The acquisition could boost Bitcoin’s price and volatility due to increased institutional demand. The reported 18% surge in BTC/USDT trading volume on Binance ($1.2 billion) post-announcement on April 29, 2025, suggests immediate market optimism. Large purchases like this reduce Bitcoin’s available supply, potentially driving prices higher, especially if other institutions follow suit.
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Cardone Capital’s move signals growing confidence in Bitcoin among traditional investment firms, particularly in real estate. This could encourage other asset managers to allocate portions of their portfolios to cryptocurrencies, further legitimizing Bitcoin as an asset class and accelerating mainstream adoption.
By integrating Bitcoin into its $5 billion real estate portfolio, Cardone Capital aims to hedge against inflation and fiat currency devaluation. Bitcoin’s historical performance as a store of value could enhance returns, but its volatility introduces risks that may affect the fund’s stability and investor confidence. The 10X Space Coast Bitcoin Fund, combining multifamily real estate cash flow with Bitcoin investments, represents a novel hybrid model. This could attract investors seeking exposure to both stable real estate income and high-growth crypto assets, potentially setting a precedent for similar funds.
Large-scale crypto purchases by a firm like Cardone Capital may draw attention from regulators, especially in the U.S., where cryptocurrency oversight is tightening. Compliance with SEC or IRS rules could complicate the acquisition or impact how the fund operates. The announcement may polarize Cardone’s investor base. While crypto enthusiasts may view it as a forward-thinking move, conservative real estate investors might worry about the risks of Bitcoin’s price swings, potentially affecting capital inflows or redemptions.
Increased institutional investment could bolster Bitcoin’s infrastructure, such as custody solutions and trading platforms, while also pressuring networks to scale e.g., via Lightning Network to handle growing transaction volumes. This move could amplify Bitcoin’s market presence and institutional credibility but introduces risks tied to volatility, regulation, and investor perception. It also underscores a trend of blending traditional and digital assets in investment strategies.
Beyond the announced plan to acquire 1,000 Bitcoin (BTC), Cardone Capital has made notable strides in integrating cryptocurrency into its investment strategy, primarily through its innovative real estate-Bitcoin hybrid model. In December 2024, Cardone Capital launched the 10X Space Coast Bitcoin Fund, a $87.5 million fund combining institutional-grade real estate with Bitcoin purchases. The fund acquires cash-flowing multifamily properties (e.g., a 300-unit Class A asset in Melbourne, Florida) without debt and uses the monthly rental income to make ongoing Bitcoin purchases.
The fund targets a 12%-15% internal rate of return (IRR) from real estate, with Bitcoin’s growth potential aimed at boosting overall returns. It includes a tax-free refinancing strategy, potentially returning 100% of investors’ initial capital after several years while retaining ownership of both real estate and Bitcoin. Cardone Capital purchases Bitcoin in a price-agnostic manner within 72 hours of monthly real estate cash flow distributions, holding it through an institutional custodian rather than spot ETFs. There are no immediate plans to sell the Bitcoin holdings.
The fund attracted $100 million in commitments within 72 hours, reflecting strong investor confidence in this hybrid model. Grant Cardone has expressed ambitions to roll out 10 additional real estate-Bitcoin hybrid projects by June 2025, with a total investment of $1 billion. If Bitcoin reaches Cardone’s projected $1 million per coin within five years, these funds could amass a significant Bitcoin reserve, potentially worth hundreds of millions, funded by real estate cash flow.
The strategy draws inspiration from MicroStrategy’s Michael Saylor, who suggested combining real estate cash flow with Bitcoin accumulation. Cardone plans to raise capital for these funds through investor commitments and corporate bonds, aiming to replicate Saylor’s convertible note formula. In 2018, Grant Cardone expressed caution about cryptocurrencies, stating they were “not there yet” and emphasizing real estate’s reliability for consistent cash flow. This suggests a shift in his outlook by 2024, likely driven by Bitcoin’s growing institutional acceptance and price appreciation.
Gary Cardone, associated with Cardone Digital Ventures, has voiced strong interest in Bitcoin and infrastructure ventures like Node 40, but this is separate from Cardone Capital’s activities under Grant Cardone. Gary’s focus includes Bitcoin accumulation and compliance-related crypto ventures, but there’s no indication of direct overlap with Cardone Capital’s funds.
By incorporating Bitcoin, Cardone Capital aims to enhance returns beyond traditional real estate yields (10-12% IRR to potentially 20%+), appealing to investors seeking exposure to high-growth assets while maintaining real estate’s stability. The firm’s Bitcoin purchases, especially if scaled to $1 billion across multiple funds, could contribute to price appreciation by reducing available supply, particularly as institutional interest grows e.g., Franklin Templeton, BNY Mellon.
Bitcoin’s volatility poses risks to fund performance, and the long-term lockup (3-10 years) may deter investors needing liquidity. Regulatory scrutiny could also intensify due to the fund’s novel structure and crypto exposure. The hybrid fund targets two audiences: traditional real estate investors new to crypto and crypto enthusiasts interested in real estate. However, the latter may be less interested unless direct Bitcoin-based property purchases (e.g., crypto mortgages) are enabled, which Cardone acknowledges are not yet available.
Cardone Capital’s cryptocurrency investments are centered on Bitcoin, primarily through the 10X Space Coast Bitcoin Fund and planned future hybrid funds, with no confirmed investments in other cryptocurrencies like Ethereum or altcoins. The strategy leverages real estate cash flow to accumulate Bitcoin, aiming to blend stability with high-growth potential.
