Infrastructure and Cloud Mining: Kevin O'Leary analyzes why most cryptocurrencies find it difficult to turn their fortunes around

Well-known investor Kevin O’Leary has recently undergone a significant shift in investment focus. The seasoned investor from Shark Tank is no longer concentrating on digital assets themselves but is turning his attention to the infrastructure supporting the entire ecosystem—particularly cloud mining, data centers, and energy infrastructure. This strategic shift reflects a profound market insight: in the cryptocurrency space, true value lies not in tokens but in infrastructure.

26,000 Acres of Land: Building an Infrastructure Empire from Bitcoin Mining to Cloud Operations

O’Leary recently disclosed that he has control over 26,000 acres of land across multiple regions. Of these, 13,000 acres are located in Alberta, Canada (already announced), and another 13,000 acres are scattered elsewhere, currently in the permitting stage. These lands are carefully planned to support cloud mining, artificial intelligence computing, and cloud infrastructure.

O’Leary’s investment philosophy is straightforward: Bitcoin mining and data center operations require large amounts of land and energy resources to get started. Just as real estate developers constantly seek prime plots to build skyscrapers, mining and AI companies are doing the same. But unlike developers who build their own facilities, O’Leary’s strategy is to acquire land and energy contracts and then lease them to builders. He states, “My job isn’t to build data centers but to prepare all the necessary permits and infrastructure so companies can come in and use them immediately.”

His portfolio already includes shares in infrastructure company Bitzero. The company operates data centers in Norway, Finland, and North Dakota, providing Bitcoin mining and high-performance computing services. This validates O’Leary’s view of cloud mining and data centers as strategic assets. More notably, he claims that the value of energy contracts at these locations—some with electricity prices below six cents per kilowatt-hour—is actually worth more than Bitcoin itself. This suggests that, in the long run, the importance of energy infrastructure will far surpass that of digital assets.

O’Leary also believes that about half of the data center projects announced over the past three years will never be built. He describes this phenomenon as “land grabbing without understanding the necessary conditions.” Companies that haven’t secured land and energy guarantees upfront will ultimately be unable to turn their grand plans into reality.

Institutional Capital Focuses on Two Assets: Dominance of Bitcoin and Ethereum

Meanwhile, O’Leary has become increasingly pessimistic about the broader cryptocurrency market. He claims that only two assets truly attract institutional capital: Bitcoin and Ethereum. Although recent crypto ETFs have attracted some retail investment, in his view, these products are almost meaningless for institutional investors.

Data supports this perspective. O’Leary points out that holding just these two positions can capture 97.2% of the market volatility—this statistic clearly illustrates the degree of market centralization. A recent report from Charles Schwab further confirms this: of the approximately $3.2 trillion total market cap of cryptocurrencies, nearly 80% is associated with foundational blockchains like Bitcoin and Ethereum. Even with thousands of new projects vying for attention and investment, market value remains highly concentrated in these two networks.

As for those dismissed as “worthless tokens,” O’Leary bluntly notes they have fallen 60% to 90%, and states these tokens will never rebound. This is a harsh market reality: the era of most alternative tokens is over, and institutional funds and savvy investors are voting with their feet.

Regulatory Breakthroughs: Unlocking Institutional Capital into Crypto

Although institutional interest in Bitcoin and Ethereum is established, O’Leary believes that scaling large-scale institutional investment depends heavily on improving the US regulatory environment. He is closely watching the crypto market structure bill currently drafted in the US Senate, which could be a watershed moment for the industry.

However, he points out a key pain point in the current bill: the prohibition on offering yields on stablecoin accounts. O’Leary considers this restriction unfairly advantageous to traditional banks and suppressive to crypto business models. This clause has recently led Coinbase to withdraw its support for the bill. O’Leary criticizes, “This creates an unfair competitive environment. Unless we allow stablecoin holders to earn yields, this legislation is likely to be shelved.”

The economic stakes are high. In Q3 2025 alone, Coinbase earned $355 million from its stablecoin yield products. Allowing such yield functionalities is crucial for the ecosystem’s development, but current regulatory frameworks are blocking this progress. Besides stablecoin yields, other crypto firms have expressed concerns over DeFi regulation, securities regulation, and oversight rules.

Despite these hurdles, O’Leary remains optimistic that the bill will eventually be amended. Once these restrictions are lifted, he expects a significant influx of institutional capital into the Bitcoin market, driving a new wave of adoption.

The key to this trend is that infrastructure and cloud mining investors—like O’Leary—are preparing for the upcoming institutional capital wave. By controlling energy, land, and data center resources, they are building a foundation capable of supporting the next wave of crypto capital. Those tokens and projects that are no longer viable will gradually fade away in this process.