Cardone Capital Adds 1,000 Bitcoins to Reserve, Diversifying Portfolio

Cardone Capital, a prominent equity fund manager, has made a significant move into the cryptocurrency space by adding 1,000 bitcoins to its reserve. The announcement was made by the company's CEO, Grant Cardone, on June 21. This strategic acquisition is part of a broader plan to diversify the company's holdings beyond real estate, which has traditionally been its primary focus.

Cardone Capital's decision to integrate Bitcoin into its investment strategy is seen as a bold step towards creating a diversified portfolio that combines the stability of real estate with the long-term growth potential of Bitcoin. The company currently manages over 14,200 units and plans to add 5,000 more units this year, along with an additional purchase of approximately 3,000 bitcoins. This dual-asset strategy is designed to leverage the strengths of both asset classes, providing a balanced approach to investment.

On June 20, Cardone Capital revealed that it had acquired 150 bitcoins worth around $15.6 million. This purchase is part of a $1.6 billion five-year dual-asset investment strategy that aims to increase Bitcoin investments while reducing the focus on real estate. The strategy involves gradually shifting allocations from real estate to Bitcoin over the next five years. Initially, real estate allocations will be 77% in the first year, decreasing to 45% by the fifth year, while Bitcoin allocations will increase from 33% to 66% during the same period.

Cardone Capital's initial Bitcoin position was established with an investment of $290 million to purchase 2,914 bitcoins at an average price of $100,000 per bitcoin. The company plans to use $140 million of monthly cash flow from its real estate holdings to acquire additional bitcoins over the next five years. To ensure the security of its Bitcoin holdings, Cardone Capital will invest in institutional-grade cold storage solutions, aligning its long-term Bitcoin holding strategy with macro Bitcoin market cycles.

This move by Cardone Capital is part of a growing trend among institutions adopting Bitcoin as a reserve asset. Other companies, such as Reitar Logtech, DDC Enterprise, and Prenetics, have also announced significant Bitcoin purchases as part of their treasury diversification strategies. These companies are recognizing the potential of Bitcoin as a store of value and a hedge against inflation, further validating the cryptocurrency's role in the global financial landscape.