Peter Schiff opposed Grant Cardone’s investment model combining real estate income with Bitcoin purchases. Schiff argued that this structure does not solve a new problem for property investors. The debate centered around Cardone Capital’s fund model that accumulates Bitcoin from rental income.
Direct objection from Schiff
Schiff stated in his X post that combining real estate and Bitcoin does not produce a functional benefit. According to him, Cardone’s approach is based on the assumption that the costs associated with properties can be covered by Bitcoin reserves. However, Schiff said regular expenses such as maintenance and repairs can already be paid with rental income.
Peter Schiff argued that combining real estate and Bitcoin does not solve anything, because ongoing expenses such as repairs and maintenance can already be covered by rental income, and he opened this opinion to public debate.
Schiff’s criticism revived the question of whether Bitcoin should be held as a balance sheet asset, especially in real estate investment trusts and similar property-based fund structures. In his view, a high-volatility digital asset added to a rent-generating asset class could create additional risk rather than strengthen the underlying model.
How Cardone Capital’s model works
At the center of the discussion is the Bitcoin-backed real estate strategy developed by Cardone Capital. The company can purchase BTC with cash flow from multi-family housing projects. Cardone describes this structure as a model that combines property income with digital asset exposure.
Cardone Capital launched a fund called 10X Space Coast Bitcoin Fund worth $87.5 million. The fund in question invests in both real estate and Bitcoin within the same structure. It was stated that the model offers an indirect access channel for investors who do not want to buy or store Bitcoin directly.
Grant Cardone is known as an American entrepreneur and real estate-focused investor. Cardone Capital operates as an investment company focusing on income-producing real estate. Cardone stated that a significant portion of the fund’s investors have not owned crypto assets before, so the product serves as a gateway to digital assets.
Bitcoin purchases and growth targets
The company reportedly continued to buy during market weakness. Cardone Capital recently purchased 282 BTC for approximately $18 million. It was stated that this addition was financed by rental income from certain multi-family housing assets.
It was reported that with the purchase made in January, the company’s Bitcoin assets reached approximately 1,000 BTC, and this transaction was worth $10 million. The company was not satisfied with this and increased its targets.
Cardone Capital aims to reach 3,000 BTC by the end of 2026. It was stated that the target in the longer term is 10,000 BTC. It was noted that these plans also included allocations to be made through different investment instruments.
What supporters and critics say
Supporters of the model think that regular cash flow based on rental income can enable recurring BTC purchases over time. According to this view, Bitcoin can also serve as a potential reserve asset in the long run.
Critics, on the other hand, emphasize that the main risks of real estate such as debt, insurance, maintenance, vacancy rate and interest are not eliminated by this method. According to them, Bitcoin is not a solution to this structure, but adds more price volatility. The debate has thus extended to the question of how much Bitcoin should be kept in company balance sheets.
