Kevin O’Leary says he could start a Bitcoin mining operation this year

• O'Leary says many sovereign wealth funds are looking to invest in Bitcoin mining operations and the next two to three years could see massive entries in the sector.
• It also believes that institutions are enthusiastic about companies that comply with local government and EU regulations.
• He may delve into mining operations himself this year, he added.

"reservoir shark" star kevin o'leary is positive about bitcoin mining as an investment strategy and says he will probably start his own mining later this year.

The Canadian businessman shared his plans in an interview with Anthony Pompliano, noting that Bitcoin mining was likely to see huge capital inflows over the next two, three years.

Mr. o'leary claims to have been able to talk to investors from various countries, especially in the middle east and the lesson learned from these travels is that many are considering investing in bitcoin mining via their sovereign funds.

While he predicts a majority of countries will eventually start mining Bitcoin, the O’Shares Investment Advisors chairman says the operations will want to do so in a manner that supports environmental sustainability. He says that this is because the funds will want to avoid the recent controversy over the Bitcoin mining.

“Once a sovereign fund decides it is going to invest in Bitcoin, it’s going to want to mine it sustainably and ethically,” he said.

He highlighted that environmental requirements (environmental, social and governance) and other compliance issues are at the top of the list for these investors. Beyond that, those non-financial factors are part of their own considerations before they invest.

This is also the approach Mr. O'Leary will pursue when deciding how to invest in the sector, he said.

The famous investor also revealed that he had long considered running a crypto mining operation, noting that he would "probably do so within this calendar year."

When it comes to what mining companies need to do to attract investment, Mr. O'Leary says that regulatory compliance is essential. Companies also need to ensure that local communities are involved and that they understand how some of the profits go back to the community.

He also noted that much of the institutional capital will be invested in crypto mining over the next few years. However, he feels that the inflows might only come if investors believe the exposure to BTC through equity that they are getting is from a company that has adhered to all the regulatory requirements.

These investors have to consider the extracted coins as part of the mining company's balance sheet, something that will give institutions and funds the trust to buy and hold crypto shares.

Marathon digital backgrounds, riot blockchain and hut 8 mines are some of the main mining companies whose shares rose significantly as the bitcoin price jumped to a new record in 2021.

Kevin O’Leary says he could start a Bitcoin mining operation this year appeared first on Coin Journal.