Cardone Capital adds 1,200 BTC using rental income

Cardone Capital has added about 1,200 BTC and 2,000 multifamily units to its real estate-backed Bitcoin strategy, increasing both assets held across its private investment vehicles.

• Cardone Capital has added about 1,200 BTC and roughly 2,000 multifamily units.
• Rental income from selected properties funds recurring Bitcoin purchases through a dollar-cost averaging plan.
• Grant Cardone plans to accumulate 10,000 BTC across 10 specialized investment funds.
• The private funds carry Bitcoin volatility, property-market risks, and limits on investor withdrawals.

Grant Cardone said in an X post on Aug. 28 that his $5.3 billion real estate investment firm was “doubling down” on its multifamily and Bitcoin model by adding about 2,000 apartments and 1,200 BTC.

Cardone did not provide the purchase price, execution dates, or a breakdown showing which funds received the Bitcoin. He also did not identify the newly added properties or disclose whether all 2,000 units came from one transaction.

The firm’s model places income-producing apartment buildings and Bitcoin inside private investment vehicles. Rather than relying mainly on new stock or debt sales, Cardone Capital directs part of the rental cash generated by selected properties toward recurring BTC purchases.

Under the strategy described by Cardone, property managers first work to increase the cash flow generated by apartment buildings. The firm then uses a portion of the available income to purchase Bitcoin, including when the cryptocurrency falls in price.

Purchases follow a dollar-cost averaging method, according to company statements, allowing the funds to add Bitcoin at regular intervals instead of making their entire allocation at one price. Cardone Capital has promoted the approach as a way to build BTC holdings without depending on repeated capital raises.

In June 2025, crypto.news reported that the company planned to acquire 3,000 BTC after launching the 10X Miami River Bitcoin Fund. The vehicle paired a 346-unit apartment complex in Miami with an initial $15 million Bitcoin allocation and reserved part of its rental income for further purchases.

At the time, Cardone Capital managed more than $5 billion in assets, including over 14,200 rental units and 500,000 square feet of office space. Cardone also listed a $42 million Golden Beach property through Propy in early 2024, offering buyers the option to complete the transaction in Bitcoin or U.S. dollars.

The 1,200 BTC addition raises the fund’s exposure.

Before the latest disclosure, Cardone Capital had already built a Bitcoin position through several purchases. The firm held about 1,000 BTC in January after buying another $10 million worth of the asset, according to company statements cited in earlier January coverage.

Rental income from a 366-unit apartment complex in Boca Raton was among the cash-flow sources used for the purchase plan. Instead of directing all available income to investor distributions or more property acquisitions, Cardone Capital allocated part of it to Bitcoin.

During a June market decline, the firm purchased another 282 BTC for about $18 million while Bitcoin traded near $63,000. The transaction followed a separate 130 BTC purchase valued at approximately $9.7 million.

Cardone also said at the Consensus 2026 conference in Miami that the company had added $100 million in Bitcoin as part of a transaction that included about $235 million in real estate. According to Cardone, the assets were held together through a limited liability company rather than through a standard real estate investment trust.

With the latest addition, the company is working toward a target of 10,000 BTC across 10 specialized funds. Cardone has previously set an interim goal of holding 3,000 BTC by the end of 2026, although the latest announcement did not state the company’s combined Bitcoin balance after accounting for all funds and transactions.

Selected vehicles may allocate between 15% and 50% of their assets to digital currencies, according to Cardone Capital’s stated plans. Investors receive an interest in the private vehicle rather than direct ownership of the Bitcoin, while third-party institutional custodians handle storage and trade execution.

For U.S. investors, the fund structure differs from buying shares in a spot Bitcoin exchange-traded fund or a publicly traded Bitcoin treasury company. An ETF trades on an exchange and generally allows investors to enter or leave during market hours, while Cardone Capital’s private vehicles may require longer holding periods.

The company primarily offers its funds to accredited investors. Under the SEC’s current criteria, an individual can qualify through several routes, including net assets exceeding $1 million excluding a primary residence, or annual income above $200,000 individually or $300,000 with a spouse or partner in each of the previous two years.

Cardone has argued that private funds offer more flexibility than REITs because listed real estate trusts generally must distribute at least 90% of their taxable income to shareholders to retain their tax status. His funds can keep part of their property income and deploy it into Bitcoin rather than distributing nearly all taxable earnings.

Gold advocate Peter Schiff disputed the value of combining the two asset classes in June, arguing that rental income already pays for property maintenance and other costs. In his criticism of the model, Schiff said adding Bitcoin introduces an asset that real estate investors do not need.

“Combining real estate with Bitcoin solves nothing,” Schiff said.

Cardone, by contrast, has described the design as “inspired by treasury companies but with real assets and real cash flow.” He has projected annual returns of 22% to 32% for the hybrid vehicles, though the figures are management forecasts rather than established long-term results.

Combining the assets exposes investors to changes in both markets. A prolonged Bitcoin decline could lower the value of a fund’s digital-asset position, while vacancies, repair expenses, insurance costs, interest rates and weaker rental demand could reduce the cash available for future purchases.

Private-fund lockups add another constraint because investors may not be able to withdraw capital on demand. Access can depend on the terms of each vehicle, scheduled distributions, property refinancing or the sale of an underlying building.

Investors also do not control the wallets or private keys holding the fund’s Bitcoin. Cardone Capital says institutional third parties provide custody and execution, leaving fund participants with an economic interest in the vehicle rather than a transferable claim to a specific amount of BTC.

For federal tax purposes, the IRS treats Bitcoin and other digital assets as property rather than currency. The tax treatment experienced by an investor would depend on the fund’s legal form, its transactions, and how income, gains, or losses are allocated under the vehicle’s governing documents.

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