Cardone Capital, a prominent real estate investment firm managing over $5 billion in assets, recently introduced the 10X Miami River Bitcoin Fund. This innovative fund combines a 346-unit multifamily commercial property situated on the Miami River in Florida with $15 million in Bitcoin (BTC). The fund marks Cardone Capital's fourth venture blending BTC with commercial multifamily real estate.
In an exclusive interview with Cointelegraph, Grant Cardone, the founder and CEO of Cardone Capital, shared the inspiration behind the Miami River Bitcoin Fund. He mentioned that the idea originated from his brother, who proposed examining the potential outcome of converting all cash flows from real estate into Bitcoin over the past 12 years. The hypothetical scenario revealed a substantial growth from $160 million to approximately $3 billion, prompting Cardone to create a fund that merges real estate investments with Bitcoin.
Cardone Capital's long-term objective is to amass $1 billion in real estate holdings and $200 million in BTC as a treasury asset across their hybrid funds. The unique strategy of combining income-generating hard assets with Bitcoin as a store of value has the potential to disrupt traditional commercial real estate investment vehicles like real estate investment trusts (REITs) and market-traded funds.
The firm aims to simplify Bitcoin adoption for investors and tenants, eliminating the technical complexities associated with the digital currency. Cardone revealed plans for a rewards program that pays tenants in Satoshis, Bitcoin's smallest unit, for demonstrating good renter behavior. This initiative not only incentivizes tenants but also introduces them to Bitcoin without requiring an in-depth understanding of its technical intricacies.
Moreover, Cardone Capital is exploring the development of a hybrid Bitcoin mortgage product in collaboration with other financial institutions. This innovative offering would enable clients to leverage their combined Bitcoin holdings and real estate equity for borrowing purposes, merging traditional real estate investment with the emerging digital asset landscape.
By integrating Bitcoin into its real estate investment vehicles, Cardone Capital aims to broaden investor exposure to the digital asset market and drive widespread adoption of Bitcoin among individuals who may otherwise be deterred by the technical complexities. The firm's strategic approach underscores its commitment to pioneering innovative investment solutions that bridge the gap between traditional asset classes and the evolving cryptocurrency space.
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