The debate over the “suitability of real estate cash flows for the allocation of bitcoin” rose again. Gold supporters, Peter Schiff, have recently publicly opposed Grant Cardone ' s use of rental income for the continued purchase of Bitcoin, which does not solve the real problems of real estate investment, but introduces a new risk of price volatility.
Schiff said the rent was enough to cover the expenses
Cardone Capital has recently been promoting a “house + bitcoin” configuration model. The idea is to gradually use the cash flow of rent generated by multi-household projects for the purchase of bitcoin and to provide investors with access through specially designed investment instruments.
Schiff stated on social platform X that real estate itself did not require bitcoin. In his view, the repair, maintenance and day-to-day expenses of the property could have been covered by rental income and there was no need to place high volatility assets on the balance sheet.
Cardone's real estate and BTC.
The company recently launched a 10X Space Chapter Bitcoin Fund, with $87.5 million in both real estate and Bitcoin assets. According to Cardone, this structure allows traditional investors who do not buy encrypted assets directly to contact bitcoin through familiar real estate products.
He also criticized the allocation mechanism of the Trust Fund for Traditional Real Estate Investment. In accordance with United States rules, REIT is usually required to distribute at least 90 per cent of taxable income to shareholders. According to Cardone, this would limit its ability to hold bitcoin as a reserve asset on a long-term basis.
The company's moving on with the currency purchase.
Cardone Capital did not slow down the pace of the purchase of currency, despite external challenges. The company had previously purchased 282 BTCs at a time when Bitcoin was close to US$ 6.2 million, amounting to approximately US$ 18 million, and continued the practice of allocating bitcoin to rental income for a number of residential projects.
In January of this year, after completing a $10 million buy-in, the company was close to 1,000 BTCs. In accordance with its stated objective, Cardone Capital plans to raise the total hold hold to 3000 BTCs by 2026, while the long-term goal is to hold 10,000 BTCs through multiple investment instruments.
This disagreement also reflects different perceptions of the market’s TT-bank strategy. Proponents argue that bitcoin can be a long-term reserve asset if it is continuously purchased in different market cycles with a stable cash flow; opponents argue that real estate itself has debt, insurance, maintenance and cash-flow management needs, which, in addition, will only complicate the asset structure.