Schiff argues that property companies already generate enough cash flow to cover operating expenses. While Cardone believes the model provides investors with indirect Bitcoin exposure and long-term treasury benefits, Schiff is firm in his belief that Bitcoin adds little value to a business that already produces steady rental income.
Bitcoin Adds No Value to Property…
Peter Schiff recently criticized Grant Cardone’s strategy of combining real estate investments with Bitcoin accumulation. He argues that the approach does not actually address any meaningful problem for property investors.
The debate emerged after Cardone promoted investment funds that use income generated from rental properties to purchase Bitcoin. This creates a hybrid model that blends traditional real estate with digital assets.
In a post on X, Schiff dismissed the concept by stating that “combining real estate with Bitcoin solves nothing.” The longtime gold advocate challenged Cardone’s argument that real estate investment vehicles need Bitcoin reserves to help cover future maintenance and repair costs. According to Schiff, rental income from income-producing properties already provides the cash flow required to fund ongoing operational expenses, making Bitcoin an unnecessary addition to the balance sheet.
Cardone Capital has been actively pursuing a strategy that integrates Bitcoin purchases into its real estate portfolio. The company recently launched the $87.5 million 10X Space Coast Bitcoin Fund, which is an investment vehicle designed to hold both multifamily real estate assets and Bitcoin. Cardone believes the model as a way for traditional real estate investors to gain exposure to Bitcoin without having to buy or manage the cryptocurrency directly. He also argued that the structure serves as an entry point for investors who may have little or no previous experience with digital assets.
At the center of the disagreement is the question of whether Bitcoin really provides more value to a business model that already generates steady rental income. Cardone has been particularly critical of traditional real estate investment trusts (REITs), as regulations require them to distribute at least 90% of taxable income to shareholders. In his view, those requirements limit their ability to accumulate Bitcoin as a treasury reserve asset and benefit from potential long-term appreciation.
Schiff is still unconvinced by that argument. He holds firm that property companies can simply rely on rental income to meet maintenance, repair, and operating expenses without introducing the volatility associated with Bitcoin holdings.
Despite the criticism, Cardone Capital is expanding its Bitcoin position. The company recently bought an additional 282 BTC valued at approximately $18 million during a market downturn. The acquisition added to a growing Bitcoin treasury that has been funded in part through cash flow generated by selected multifamily properties.
The firm steadily increased its exposure to the cryptocurrency over time. Earlier this year, Cardone Capital disclosed that it held around 1,000 BTC after a $10 million Bitcoin purchase. Looking ahead, the company plans to hold 3,000 BTC by the end of 2026 and eventually expand its holdings to 10,000 BTC.
