Billionaire investor Kevin O'Leary recently revealed in an interview with Daniela Cambone's Stansberry Research when bitcoin's price will appreciate significantly and why.
"Dirty" Bitcoin miners
O'Leary explained that institutional investors were barred from direct exposure to cryptocurrencies until the market was finally regulated, and increasingly buy bitcoin shares as proxy.
"They buy shares in public Bitcoin mining companies — Marathon, Riot, etc.," he explained, explaining that these miners keep most of the mined bitcoins on their balance sheets, so over time their shares trade with the volatility of the cryptocurrency itself.
"You can see that the ups and downs of these stocks have almost completely replaced Bitcoin," he said, noting that the Larry Fake ESG mandate was recently proposed by BlackRock, the largest sovereign wealth and pension plan management company.
Mr. Wonderful clarified that BlackRock's requirement that these companies develop "auditable" ESG sustainability mandates could put some Bitcoin miners in trouble.
"The bitcoin mining industry started buying carbon credits, trying to make them look green — but that's completely unauditable," he said, adding, "If you're going to audit one of the companies — they're offside." ”
O'Leary said he's been "selling Marathons, selling Riots, selling all these public mining companies" because he's confident they're "going to be crushed" this year and all of their "institutional followers" are going to pull out.
"Bitcoin will be mined somewhere permanently," O'Leary concluded, adding that he was less worried about crypto mining legislation affecting the price.
solution
According to Mr. Wonderful, "solutions" are emerging in countries like Canada, Norway, and upstate New York and western Texas.
He clarified that "these new generation miners" are building their bitcoin mining businesses in addition to clean energy, including hydro, wind and nuclear.
"The reason they're doing this is that there's no carbon in this equation — they don't have to be audited, they don't have to buy carbon credits, they don't have to worry at all, they're doing the same thing," he noted, adding that the money he's going to get by "selling all the dirty miners" is going to be invested in these new companies.
"Now I'm sure every coin I own is sustainably mined," he concluded, while he warned investors to "stay away from dirty miners."
"If they tell you they're buying carbon credits, run up the hill," he concluded.
The price of Bitcoin
O'Leary also revealed that in addition to investing in Norwegian mining facilities with a partner in the United Arab Emirates (UAE), he took advantage of Facebook's 30 percent price adjustment and "parked some money" there.
The Shark Tank star also mentioned that WonderFi Technologies, of which he is a shareholder, recently expanded its presence in Canada — acquiring Bitbuy, the country's first regulated cryptocurrency exchange.
"You want to talk about bitcoin going to reach $100,000, $200,000, $300,000 — that's going to be the time when institutions can finally buy it," O'Leary said, adding that "sometime in the next two to three years, U.S. regulators will rule on cryptocurrencies." ”
He noted that Bitcoin can be seen as a kind of software, and institutions are keen to own software — they own Microsoft, they own Google.
"So as long as it's compliant, it's easy for them to understand it." They'll buy one to three percent. That's when prices will appreciate," he concluded.