Cardone Capital, a real estate investment firm with over $5 billion in assets under management, has launched the 10X Miami River Bitcoin Fund. Here are the details:
Composition of the Fund: It is a dual – asset fund consisting of a 346 – unit multifamily commercial property located on the Miami River in Florida, and $15 million worth of Bitcoin (BTC). This is the firm’s fourth blended investment vehicle that combines BTC and commercial multifamily real estate.
Operation and Goals: The fund will convert a portion of its monthly cash flows into BTC. The founder and CEO of Cardone Capital, Grant Cardone, said in an interview with Cointelegraph that the long – term goal of the company is to accumulate $1 billion in real estate assets and $200 million in Bitcoin reserves across its hybrid funds.
Inspiration for Establishment: The idea of starting the fund came from a suggestion by Cardone’s brother. Cardone calculated that if all the cash flow from real estate had been converted into Bitcoin over the past 12 years, $160 million would have become around $3 billion.
Potential Impact: The unique approach of the fund, which combines income – producing hard assets with Bitcoin as a store of value, may disrupt the market for real estate investment trusts and other traditional commercial real estate investment vehicles. In addition, Cardone hopes to introduce investors and tenants to Bitcoin, and is considering a rewards program paid in satoshis for long – term tenants who pay on time and have good rental behavior. He is also working with other financial firms to create a hybrid Bitcoin mortgage product to allow clients to borrow against their combined Bitcoin holdings and equity in real estate investments.
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