Grant Cardone Says There Will Be 'A Massive Implosion' Of Bitcoin Treasury Companies
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Digital asset treasury companies may pose a threat to Bitcoin, according to real estate guru Grant Cardone.
“I think there’s going to be a massive implosion of treasury companies,” Cardone said in an episode of cryptocurrency podcast “Altcoin Daily” released on Monday.
“It is my biggest concern for Bitcoin and Bitcoin’s price short term,” he added.
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Cardone, who has become a Bitcoin proponent over the past year and is building something of a BTC treasury of his own, said he was particularly worried about treasury companies with no underlying business.
“The ones I’m worried about is the no company, the no business, the no accounts receivables, the no customers, the no service, the no product,” he said. “You’re gonna sell shares on the ATM in order to buy Bitcoin and think that this is going to give you some kind of pendulum. Yeah, that ain’t going to happen, bro.”
Over the past year, Cardone has launched mixed funds combining real estate and Bitcoin with 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 upside, he has said.
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Cardone told “Altcoin Daily” that his funds differed from other Bitcoin treasuries because there was an actual business and cash flow.
“I have $125 million of EBITDA in year one,” he said. “Most of these companies won’t have $125 million of EBITDA. You could put them all together and they won’t have that because there’s no real company there.”
Meanwhile, Cardone said Bitcoin treasury pioneer Strategy (NASDAQ:MSTR) would be fine because of its sheer size. The company is the largest Bitcoin treasury with over 641,000 BTC worth $65 billion.
“I think they’re fine because of how much Bitcoin they have,” Cardone said. “Dude, you’re so far ahead of the race, you’re a bank.”
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Cardone’s remarks come as cracks appear to be forming in the Bitcoin treasury model, with many companies trading below multiples that would allow them to raise capital without diluting shareholders.
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