Financial commentator Peter Schiff, known for his pro-gold comments and critical approach to cryptocurrencies, opposed Grant Cardone’s new model combining Bitcoin with real estate investments. Schiff argued that bringing real estate and Bitcoin together does not solve a fundamental problem.
New fund structure introduced
Grant Cardone, founder of Cardone Capital, recently announced a structure that brings Bitcoin and real estate under the same investment roof. The company announced at the Consensus Miami 2026 event that it is combining cash flow-generating multifamily housing projects and Bitcoin purchases into a single private LLC. Cardone Capital is known as a company focusing on real estate investments.
Mini dictionary: LLC is a limited liability company structure commonly used in the United States. This model allows investment assets to be collected under a single legal entity and limit legal liability.
As part of this plan, the $87.5 million 10X Space Coast Bitcoin Fund was recently launched. At the heart of the structure is the directing of rental income from real estate to additional Bitcoin purchases. Cardone suggested that this model could challenge established structures in the traditional real estate investment trust market.
Peter Schiff argued that this approach was not convincing, stating that bringing real estate and Bitcoin together in the same structure did not produce a new solution.
REIT debate came to the fore
The problem, according to Cardone, is that the traditional REIT model, shaped in the 1960s, has become limiting in today’s conditions. Under the current system, companies must distribute at least 90% of their taxable income to partners. Cardone stated that, for this reason, classical structures have structural difficulties in keeping Bitcoin as a reserve asset in their balance sheets.
Cardone Capital announced that it is targeting a return of between 22% and 32% for the fund in question. Additionally, Cardone said that approximately 80% of investors participating in Bitcoin-focused real estate funds had not invested in crypto assets before. This rate strengthened the assessments that the model aims to move traditional investors to digital assets.
| Title | Cardone’s model | Traditional REIT |
|---|---|---|
| Structure | Real estate and Bitcoin in a single LLC | Classic real estate investment trust structure |
| Fund size | $87.5 million | Not stated in text |
| Revenue use | Purchasing additional Bitcoin with rental income | At least 90% of the income is distributed |
| target return | 22% to 32% | Not stated in text |
Schiff continued his objection
Schiff, who is known for his skeptical attitude towards cryptocurrencies, did not accept this reason. According to Schiff, Cardone argues that REIT-like structures should keep Bitcoin on their balance sheets in order to cover mandatory expenses such as maintenance and repair. However, Schiff does not think that this argument gives a concrete advantage to the investment structure.
Grant Cardone announced that his company collects cash flow-producing multi-family residences in the same private company structure as Bitcoin purchases and plans to use rental income for new Bitcoin purchases.
The disagreement between the parties comes as one of the latest examples of the broader debate over how Bitcoin can be combined with traditional asset classes. While one side argues that this structure can attract new investors to the crypto market, the other side thinks that it does not make a meaningful contribution to the current model.
