Grant Cardone Says There Will Be ‘A Massive Implosion’ Of Bitcoin Treasury Companies
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Digital asset treasury companies could pose a threat to Bitcoin, according to real estate guru Forgive Cardone.
“I think there will be a big boom in treasury companies,” Cardone said. in question in an episode of the “Altcoin Daily” cryptocurrency podcast that aired Monday.
“That’s my biggest concern about Bitcoin and the price of Bitcoin in the short term,” he added.
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Cardone, who became a Bitcoin supporter last year and built his own BTC treasury, said he was particularly concerned about treasury companies that had no business doing so.
“The things I worry about are no company, no business, no accounts receivable, no customers, no service, no product,” he said. “You’re going to sell shares at the ATM to buy Bitcoin and you think that’s going to give you some kind of pendulum. Yeah, that’s not going to happen bro.”
Last year, Cardone launched hybrid funds combining real estate and Bitcoin and plans to go public in the coming weeks. The strategy allows investors to capture the stability and cash flow of real estate while also benefiting from Bitcoin’s volatility and potential rise.
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Cardone told “Altcoin Daily” that his funds are different from other Bitcoin treasuries because there is real business and cash flow.
“I have $125 million in EBITDA in year one,” he said. “Most of these companies are not going to have $125 million in EBITDA. You put them all together and it’s not going to happen because there’s no real company out there.”
Meanwhile, Cardone said Bitcoin treasury’s pioneering strategy (NASDAQ:MSTR) would be good because of its size. The company is the largest Bitcoin hoard with more than 641,000 BTC worth $65 billion.
“I think they are doing well because of the amount of Bitcoin they have,” Cardone said. “Dude, you’re so far ahead in the race, you’re a bank.”
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Cardone’s remarks come at a time when cracks are appearing in many companies’ Bitcoin treasury model operating under floors this will allow them to raise capital without diluting shareholders.
