Renowned investor Kevin O’Leary emphasized the significance of owning energy infrastructure in the cryptocurrency realm on Tuesday, adding that at the right price, electricity can hold greater value than Bitcoin (CRYPTO: BTC) itself.
Why Energy Control Is Crucial For Bitcoin Mining
O’Leary took to X, adding a clip from a recent interview, in which he highlighted how Bitzero, a Canadian energy infrastructure firm where he serves as a strategic investor, is leasing power for high-performance computing and Bitcoin mining activities.
“When you control infrastructure and energy, you can choose: lease the power or mine Bitcoin. Either way, it works,” the “Shark Tank” star said.
He claimed that the cost to mine one BTC at Bitzero is $56,000, significantly lower than the market price.
Will Regulatory Clarity Propel Bitcoin Prices?
O’Leary, also known as “Mr Wonderful,” said that Bitcoin mining’s profitability stems from low-cost electricity.
“At the right power cost, electricity is more valuable than the coin itself,” he added.
O’Leary argued that until Bitcoin achieves regulatory clarity and rises to between $150,000 and $200,000, this is how value is captured.
He also dismissed altcoins as lacking institutional appeal, forecasting that once the CLARITY Act gets passed, institutions will have “no reason to own them.”
O’Leary’s Formula
This isn’t the first time O’Leary has stressed the importance of owning the underlying infrastructure that powers cryptocurrencies.
He has been a known investor in cryptocurrency infrastructure companies, including Circle Internet Group Inc. (NYSE:CRCL), Coinbase Global Inc. (NASDAQ: COIN), and Robinhood Markets Inc. (NASDAQ:HOOD).
O’Leary said previously that owning Bitcoin and Ethereum (CRYPTO: ETH) alone is sufficient to capture 97.5% of the cryptocurrency market’s volatility and yield. He also argued that altcoins will struggle to recover after market corrections, as they lack utility.
Price Action: At the time of writing, BTC was exchanging hands at $89,732.31, down 1.94% in the last 24 hours, according to data from Benzinga Pro.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo: Kathy Hutchins / Shutterstock.com
BTCGrayscale Bitcoin Mini Trust (BTC)$39.29-0.83%Overview$BTCBitcoin$89731.021.61%$ETHEthereum$2987.371.74%CRCLCircle Internet Group Inc$72.60-0.14%HOODRobinhood Markets Inc$105.41-0.35%Market News and Data brought to you by Benzinga APIs
