Key Takeaways:
Cardone Capital, a $5.3 billion private equity firm, bought 1,200 Bitcoin funded by rental cash flow from about 2,000 multifamily units, expanding its real estate-treasury hybrid strategy.
"We work to improve the cash flow of the real estate and buy more bitcoin as it falls," Grant Cardone, founder of Cardone Capital, said.
The firm held about $200 million in Bitcoin as of May after buying 1,000 BTC in 2025. Cardone has set a target of accumulating 10,000 BTC across 10 specialized funds, with some vehicles holding between 15 percent and 50 percent of assets in digital currency. Third-party institutional custodians handle storage and execution, so investors hold an interest in the private vehicle rather than controlling the underlying Bitcoin directly.
Cardone has projected annualized returns of 22 percent to 32 percent for the hybrid strategy, which combines income-producing real estate with direct Bitcoin exposure. The structure differs from public Bitcoin treasury companies such as Strategy, which often issue stock or debt to fund purchases. Cardone Capital instead uses apartment-building income as a recurring source of capital, describing the model as "inspired by treasury companies but with real assets and real cash flow."
The dollar-cost averaging approach means purchases continue during both rising and falling markets, with the firm directing a portion of rental income toward Bitcoin at regular intervals. The company also relies on private fund structures rather than standard REIT rules, giving it more flexibility to hold both property and digital assets.
The strategy carries risks from both markets. A deep Bitcoin decline could reduce fund asset values while real estate faces higher costs or weaker rental demand. Private fund investors may also face long holding periods, and the vehicles are aimed mainly at accredited investors who meet income or net-worth requirements, making the structure less liquid than public Bitcoin ETFs or listed REITs.
Bitcoin traded at $78,499, down 0.80 percent over 24 hours, as of the latest data. The purchase adds to a growing trend of non-tech firms using operating cash flow to build Bitcoin treasuries, following corporate treasury adopters such as Metaplanet that have shifted balance-sheet allocation toward the asset.
This article is for informational purposes only and does not constitute investment advice.
