In an exciting development for investors and cryptocurrency enthusiasts alike, Cardone Capital, a prominent real estate investment firm with over $5 billion in assets under management, has launched the 10X Miami River Bitcoin Fund. This dual-asset fund combines a 346-unit multifamily commercial property situated along the picturesque Miami River in Florida with a substantial Bitcoin (BTC) investment of $15 million.
Grant Cardone, the founder and CEO of Cardone Capital, shared insights in an interview with Cointelegraph about this innovative approach. The Miami River Bitcoin Fund marks the firm’s fourth blended investment vehicle, which intricately merges commercial multifamily real estate with Bitcoin assets. Cardone elaborated that a portion of the fund’s monthly cash flows will be redirected towards purchasing Bitcoin, creating a unique synergy between tangible assets and digital currency.
A catalyst for this ambitious fund was a suggestion from Cardone’s brother, which prompted the CEO to consider the potential financial gains of converting real estate cash flows into Bitcoin over the past 12 years. Cardone stated, “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.” The revelation led him to establish a fund that would not only invest in real estate but also integrate Bitcoin as a transformative asset.
The long-term vision for Cardone Capital is to accumulate $1 billion worth of real estate and $200 million in Bitcoin. The firm envisions holding Bitcoin as a treasury asset across its hybrid funds, thus positioning itself at the forefront of an evolving investment landscape. This strategy of blending income-producing hard assets with Bitcoin as a store of value has the potential to disrupt traditional real estate investment trusts (REITs) and other commercial real estate investment vehicles.
One of the primary goals of the Miami River Bitcoin Fund is to onboard users to Bitcoin, simplifying access for investors and tenants alike. By abstracting the technical barriers associated with Bitcoin, Cardone Capital aims to expose more individuals to the digital asset without necessitating in-depth technical knowledge. A proposed rewards program, which would compensate long-term tenants who demonstrate timely payments and good renter behavior with Satoshis, further supports this initiative.
As part of the hybrid real estate and Bitcoin funds, Cardone Capital aspires to drive Bitcoin adoption and ensure that investors who may otherwise shy away from cryptocurrency due to its complexity can engage with it through a familiar real estate vehicle. The approach not only democratizes access to Bitcoin but also boosts the financial well-being of participants by allowing them to benefit from both real estate and cryptocurrency investments.
In addition, Cardone is collaborating with other financial institutions to develop a hybrid Bitcoin mortgage product, enabling clients to leverage their Bitcoin holdings alongside their real estate equity. As the investment landscape continues to evolve, innovations like Cardone Capital’s 10X Miami River Bitcoin Fund may pave the way for a new era of cross-sector investment strategies.
In conclusion, Cardone Capital is taking significant steps toward integrating Bitcoin into mainstream real estate investment, creating unique opportunities for investors and tenants. As the blend of traditional real estate and digital assets gains traction, it is imperative for investors and market participants to stay informed and consider how these trends may impact their financial strategies.
