Cardone Capital has expanded its real estate and Bitcoin strategy with a purchase of 1,200 BTC and roughly 2,000 multifamily units. The $5.3 billion private equity firm uses rental cash flow from its properties to fund regular Bitcoin acquisitions.
The firm held approximately $200 million in Bitcoin as of May, having previously purchased 1,000 BTC in 2025. The latest expansion adds to an existing portfolio that combines income-producing real estate with direct cryptocurrency exposure through private investment vehicles.
Cash Flow Model and Dollar-Cost Averaging
Cardone Capital directs portions of its rental income toward Bitcoin purchases at regular intervals, following a dollar-cost averaging approach. According to Grant Cardone, the firm works to improve property cash flow and executes Bitcoin purchases during market weakness.
The structure differs from public Bitcoin treasury companies, which often issue stock or debt to fund purchases. Instead, Cardone Capital leverages recurring income from apartment buildings as capital for acquisitions. The company also operates through private fund structures rather than standard REIT rules, providing greater flexibility to hold both real estate and digital assets.
Projected Returns and Fund Structure
Cardone Capital has set a target of accumulating 10,000 BTC across 10 specialized funds. The company has projected annualized returns between 22% and 32% for the hybrid strategy, though these remain management projections without established long-term performance records.
The firm argues that real estate provides recurring cash flow during Bitcoin volatility, while Bitcoin offers potential for faster asset appreciation than property values. Investors gain cryptocurrency exposure through fund participation without directly managing wallets or private keys, with third-party institutional custodians handling Bitcoin storage and execution.
Key Risks and Limitations
The strategy carries risks from both Bitcoin and real estate markets. A significant Bitcoin decline could reduce fund asset values, while real estate faces exposure to higher costs and weaker rental demand. Private fund investors may also face extended lockup periods, limiting capital access before properties are sold or refinanced.
The structure primarily targets accredited investors meeting specific income or net-worth requirements, making it less liquid and less accessible than public Bitcoin ETFs or listed REITs.
