Grant Cardone Sees Commercial Real Estate 'Armageddon', Turns to Bitcoin for Protection

Grant Cardone, founder of Cardone Capital, warns that commercial real estate is heading towards 'almost Armageddon conditions' due to high borrowing costs. According to him, five-year all-in borrowing costs of roughly 6.4% will force institutions to unload properties below replacement cost.

The sector faces a historic repricing, and Cardone estimates that $1 trillion in commercial loans will mature within six months, forcing the institutions holding them to unwind much of their property.

To mitigate this risk, Cardone plans to add Bitcoin to every building he buys. He describes it as a 'complementary asset' that functions differently from physical property and provides a hedge against its weaknesses.

The firm currently owns 16,000 apartments and half a million square feet of office space and is targeting 25,000 coins alongside 25,000 apartments. Cardone has been deliberately building his Bitcoin position, with the firm holding 3,000 BTC so far.