Debbie Neuberger SVP, Customer Care | realtors.com
Property mogul Grant Cardone has launched a new venture on Florida's Space Coast, introducing what he claims to be the "first ever" bitcoin real estate fund. This initiative aims to merge cryptocurrency and real estate, with the goal of reducing risks associated with bitcoin investments by leveraging stable cash flow from property.
Cardone is raising $102.5 million for this fund, requiring a minimum investment of $250,000 per investor. Of the total funds raised, $15 million will be allocated to bitcoin purchases while $87.5 million will be invested in acquiring 300 residential units in Florida. He explains his approach: “I make the purchase with my money, and I pay cash for the real estate and the bitcoin at purchase,” adding that there is no debt involved.
Over a 48-month period, generated cash flow will be reinvested to acquire an additional $14 million in bitcoin. Cardone projects this could appreciate to approximately $30 million over four years. “This takes the volatility out of the bitcoin because the real estate is cash-flowing every month,” he states.
The Space Coast region includes communities such as Cocoa Beach and Cape Canaveral, known for its proximity to space exploration activities by companies like Elon Musk's SpaceX and Jeff Bezos' Blue Origin. Cardone cites these developments as key factors influencing his decision to invest in this area.
Real estate professionals have expressed interest in this dual-asset strategy combining traditional real estate stability with cryptocurrency potential. Yoann Dorat from One Sotheby’s International Realty describes it as mixing two different worlds: one steady and reliable, another unpredictable yet potentially rewarding.
Cardone’s journey with bitcoin began when he was paid 100 bitcoins for a speaking engagement in 2013; those coins are now valued significantly higher than their initial worth. His fund targets accredited investors due to SEC regulations but he advocates for broader investment access: “It’s my life’s mission to see accredited and nonaccredited investors treated the same.”
The initiative also reflects growing interest in integrating cryptocurrencies into traditional financial models. Ronen Cojocaru of 8081.io notes that incorporating bitcoin into investment strategies could lead to wider adoption among diverse investor profiles.
With projections suggesting substantial growth potential for bitcoin, Cardone remains optimistic about future opportunities despite past market fluctuations. For those concerned about volatility, he emphasizes that “real estate has been stable for thousands of years” providing a secure foundation regardless of crypto market changes.
Alerts Sign-up