Cardone Capital To Allocate About $10 Million in Bitcoin, per CEO Grant Cardone
Cardone Capital is deepening its exposure to Bitcoin after confirming a fresh allocation of roughly $10 million into the digital asset, a move disclosed by founder and CEO Grant Cardone as prices dipped near the $93,000 level. The purchase comes at a moment of heightened volatility across global markets, with Bitcoin sliding about 2% over 24 hours amid renewed geopolitical and macroeconomic pressures. Despite the short-term pullback, Cardone emphasized that the firm remains focused on long-term accumulation rather than reacting to daily price swings. “We’re not trading Bitcoin. We’re accumulating it,” Cardone said in a recent post on X, reiterating that the firm’s strategy is designed to compound over time. Buying the Dip With Rental Income Unlike many corporate Bitcoin buyers that rely on debt or equity issuance, Cardone Capital is funding its Bitcoin purchases through rental income generated by its multifamily real estate portfolio. The firm manages approximately $5.3 billion in real estate assets across the United States, with steady net operating income providing the cash used to acquire BTC during market pullbacks. The latest $10 million allocation pushes Cardone Capital’s total Bitcoin holdings close to 1,000 BTC, according to company disclosures. The buy was executed as Bitcoin retreated from levels above $95,000 earlier in the week, following market concerns tied to new U.S. tariffs announced on several European countries. This approach reflects a broader philosophy Cardone has promoted over the past year: converting predictable cash flow from income-producing properties directly into Bitcoin, without introducing balance sheet risk. A Hybrid Real Estate–Bitcoin Model Cardone Capital’s structure has drawn attention for blending traditional real estate investing with systematic Bitcoin accumulation. Earlier in 2025, the firm launched a hybrid fund that paired a $235 million multifamily acquisition with a $100 million Bitcoin allocation. A key asset in that fund is a 366-unit apartment complex in Boca Raton, Florida, which generates an estimated $10 million in annual net operating income. Rather than distributing that income or recycling it into additional property acquisitions, Cardone Capital directs the cash flow toward recurring Bitcoin purchases. The company describes the system as mechanical, with Bitcoin buys occurring regardless of broader market sentiment. Tax-advantaged depreciation from real estate holdings also plays a role, allowing the firm to maintain consistent capital deployment without selling assets or raising external financing. Long-Term Targets and Industry Context Cardone has outlined ambitious goals for the firm’s Bitcoin strategy. According to recent statements, Cardone Capital is targeting 3,000 BTC by the end of 2026, with a longer-term objective of accumulating as much as 10,000 BTC across various investment vehicles. The CEO has also indicated plans to launch a publicly traded, Bitcoin-focused company in 2026. That entity would be structured to acquire Bitcoin exclusively through rental income generated by real estate assets, extending the firm’s current model into public markets. Cardone Capital’s move mirrors a growing trend among institutional investors seeking to pair Bitcoin with cash-generating businesses rather than treating it as a standalone treasury asset. Firms like Strategy, led by Michael Saylor, have also signaled continued accumulation during recent market weakness, though often through leveraged or capital market-driven approaches. For Cardone Capital, the latest $10 million Bitcoin purchase reinforces a clear message: the firm intends to keep turning bricks into Bitcoin, using steady rent checks to build what it views as a long-term digital reserve.
Strategy Adds 22,305 $BTC, Bringing Total Holdings to 709,715 $BTC as of Jan 19, 2026
Strategy has once again reinforced its conviction in Bitcoin, announcing a fresh multibillion-dollar purchase that further distances the firm from every other corporate holder in the market. Key Takeaways Strategy Deepens Its Bitcoin Bet Michael Saylor-led Strategy disclosed that it acquired an additional 22,305 bitcoin between January 12 and January 19, 2026, spending approximately $2.13 billion in the process. The purchase was executed at an average price of $95,284 per coin, according to the company’s latest filing and public statements. With this transaction, Strategy’s total bitcoin holdings have risen to 709,715 BTC, making it the first publicly known entity to cross the 700,000 BTC threshold. At current prices, the firm’s stash is valued at well over $60 billion, further cementing Strategy’s position as the largest corporate bitcoin holder in the world. Michael Saylor confirmed the acquisition in a social media post, emphasizing the company’s long-term stance on the asset: “Strategy has acquired 22,305 BTC for ~$2.13 billion at ~$95,284 per bitcoin. As of 1/19/2026, we hodl 709,715 $BTC acquired for ~$53.92 billion at ~$75,979 per bitcoin.” The statement highlights not just the scale of the purchase, but also Strategy’s overall cost basis, which remains significantly below current market levels due to years of earlier accumulation. A Treasury Strategy Built on Bitcoin Strategy’s latest buy is its largest since November 2024 and ranks as the fifth-biggest bitcoin acquisition in the company’s history. The move aligns with a pattern that has become familiar to market participants: raising capital through traditional financial instruments and converting that capital into bitcoin, regardless of short-term price fluctuations. Since 2025, Strategy has added bitcoin to its balance sheet in more than 40 separate weeks, underlining a methodical and persistent approach rather than opportunistic buying. Even though this most recent batch was acquired at prices slightly above prevailing market levels, the company’s average acquisition cost still stands at about $75,979 per BTC. That disciplined accumulation has allowed Strategy to control more than 3% of bitcoin’s total fixed supply, a level of concentration unmatched by any other publicly traded firm. How the $2.13 Billion Purchase Was Funded The funding for the January acquisition came entirely from capital markets activity. Regulatory disclosures show that Strategy raised roughly $2.125 billion during the same period through its at-the-market (ATM) programs, combining common equity and preferred stock issuance. The majority of the funds—about $1.83 billion—came from the sale of roughly 10.4 million Class A common shares (MSTR). An additional $294.3 million was raised through the issuance of 2.95 million STRC variable-rate perpetual preferred shares. Smaller amounts were sourced from STRK preferred stock, while no capital was raised under the STRF or STRD programs. All net proceeds from these offerings were directed toward bitcoin purchases, maintaining Strategy’s long-standing policy of channeling financing activity directly into BTC exposure rather than operational expansion or acquisitions. Market Reaction and Investor Perspective Despite the headline-grabbing size of the purchase, Strategy’s stock reacted negatively in the immediate aftermath of the announcement. Shares fell by roughly 5% in premarket trading, reflecting ongoing concerns among some investors about dilution and the firm’s increasing dependence on bitcoin price movements. Over the years, Strategy’s equity has effectively become a liquid proxy for bitcoin exposure, particularly for institutional investors that prefer to avoid direct custody of digital assets. While this has attracted a dedicated shareholder base aligned with Saylor’s thesis, it has also made the company’s stock highly sensitive to crypto market volatility. The latest acquisition once again tightens the link between Strategy’s valuation and bitcoin’s performance, a dynamic that has defined the stock’s trajectory since the company first adopted Bitcoin as its primary treasury reserve asset. Institutional Accumulation Continues Strategy’s January purchase comes at a time when institutional interest in bitcoin remains resilient, even amid periods of market turbulence. While price action has been uneven in recent weeks, large holders continue to add to their positions, signaling confidence in bitcoin’s long-term role as a monetary asset. For Strategy, the logic remains unchanged. The firm views bitcoin as a superior store of value compared to cash and short-term securities, particularly in an environment where currency debasement and sovereign debt concerns persist. Each new acquisition reinforces that thesis, regardless of near-term market sentiment. By pushing its holdings beyond 709,000 BTC, Strategy has not only expanded its balance sheet but also strengthened its influence within the broader bitcoin ecosystem. Few companies have demonstrated such consistency—or scale—in their commitment to the asset. Looking Ahead As of January 19, 2026, Strategy’s bitcoin treasury stands as one of the most concentrated corporate positions in financial history. Whether this approach ultimately delivers outsized returns or heightened risk will continue to depend on bitcoin’s long-term trajectory. For now, the message from Strategy is clear: price levels, market cycles, and short-term reactions are secondary. The company remains firmly committed to accumulating bitcoin whenever access to capital allows, reinforcing its reputation as bitcoin’s most outspoken and aggressive corporate advocate.
PayPal Confirms Crypto Users Must Report Taxes, With IRS Form 1099-DA
PayPal has confirmed that U.S. users who buy, sell, or transfer cryptocurrency on its platform will now fall under a new federal tax reporting framework, marking a significant change in how digital asset activity is reported to the Internal Revenue Service (IRS). The company disclosed that it will issue IRS Form 1099-DA to eligible crypto users each tax year, with forms scheduled to be delivered by February 15. Key Takeaways A New Era of Crypto Tax Reporting Form 1099-DA is a newly introduced IRS document created specifically for digital assets. It is designed to capture proceeds from certain crypto transactions, including sales and exchanges, and share that information directly with both taxpayers and the IRS. Unlike earlier years, when crypto users were largely responsible for tracking activity on their own, the new system shifts much of the reporting burden to brokers and payment platforms. Because PayPal allows users to buy, sell, hold, and, in some cases, transfer cryptocurrency, it now qualifies as a digital asset broker under U.S. tax rules. By issuing Form 1099-DA annually, PayPal will provide users with an official summary of reportable crypto transactions tied to their accounts. This change does not automatically mean users owe taxes. Instead, the form serves as an informational record that must be considered when calculating capital gains or losses. Do Crypto Users Have to Pay Taxes? U.S. taxpayers have technically been required to report crypto activity for several years. Starting in 2020, the IRS added a direct question to Form 1040 asking whether a taxpayer received, sold, sent, exchanged, or otherwise acquired any financial interest in virtual currency during the tax year. Answering “Yes” typically meant the IRS expected additional reporting, often through Form 8949, which details capital gains and losses. What changes now is the level of visibility. Beginning with tax year 2025, digital asset brokers like PayPal are required to report proceeds from crypto dispositions directly to the IRS using Form 1099-DA. If a user sold or exchanged cryptocurrency within their PayPal wallet during the applicable year, PayPal will generate and send the form by mid-February. How PayPal Is Supporting Tax Filing In addition to Form 1099-DA, PayPal says it will provide supplemental materials to help users complete their tax filings. These include a year-end gain and loss statement and a transaction summary covering all reportable crypto activity for the year. These documents can be used to complete IRS Form 8949, which requires details such as acquisition dates, disposal dates, proceeds, cost basis, and resulting gains or losses. While PayPal may include cost basis information for convenience, users remain responsible for ensuring accuracy when filing their returns. It is also important for users to understand the limits of PayPal’s reporting. If crypto assets were acquired outside the PayPal platform and later disposed of elsewhere, PayPal will not have insight into those transactions. Tracking and reporting such activity remains the responsibility of the individual taxpayer. Why the IRS Is Tightening Oversight The introduction of Form 1099-DA stems from broader U.S. legislation aimed at closing compliance gaps in the crypto market. Regulators and lawmakers have long expressed concern that digital asset transactions were being underreported due to inconsistent standards and fragmented record-keeping across platforms. By applying broker-style reporting rules to crypto platforms, the IRS is aligning digital assets more closely with traditional investments like stocks and bonds. This approach reduces reliance on voluntary self-reporting and makes it easier for the agency to match taxpayer filings with third-party data. PayPal’s confirmation shows how major fintech companies are adjusting as enforcement deadlines approach. What This Means for PayPal and Its Users For PayPal, compliance with 1099-DA reporting reinforces its position as a regulated bridge between traditional finance and crypto. The company has steadily expanded its digital asset offerings, targeting mainstream users who may be newer to crypto investing. With that role comes increased regulatory responsibility. For users, the shift means crypto tax reporting will become harder to ignore. Receiving a 1099-DA signals that the IRS also has a record of the transaction. While this adds an administrative layer, tax professionals note that it can also simplify record-keeping for users who previously relied on spreadsheets or third-party tracking tools. Still, users must remain diligent. Holding periods, cost basis accuracy, and transactions conducted on other platforms all affect final tax outcomes. Industry-Wide Impact PayPal is not acting in isolation. Other U.S.-based crypto exchanges and brokers are also preparing to issue Form 1099-DA as the rules take effect. Together, these changes represent a broader move toward standardized reporting and transparency across the crypto sector. Critics argue that increased reporting may discourage casual participation, while supporters say it brings credibility and stability to digital asset markets. What is clear is that informal crypto tax practices are rapidly disappearing in the United States. What Users Should Do Next PayPal crypto users are encouraged to review their transaction history, understand how capital gains apply to digital assets, and seek professional tax advice if needed. Early preparation can reduce errors and surprises when tax season arrives. PayPal has indicated it will continue providing guidance and documentation as reporting deadlines draw closer, signaling that crypto tax compliance is now a permanent part of using digital assets on major U.S. platforms.
