Well-known investor Kevin O’Leary says he will only buy bitcoin that is sustainably mined in countries that use clean energy – and not ‘blood currency’ mined in China.
“I see the next year or two two kinds of coins,” he told CNBC’s “Capital Connection” on Monday. “Blood coin from China, (and) clean coin that is sustainably mined in countries that use hydroelectricity, not coal.”
Bitcoin mining is extremely energy intensive and according to Statista, about 65% of the world’s bitcoin has been mined in China since April 2020.
“I’m going on the side of a clean coin,” O’Leary says.
The chairman of O’Shares ETFs once called bitcoin ‘junk’, but recently changed his mind more, saying he would allocate 3% of his personal portfolio to the cryptocurrency, according to a CoinDesk report.
O’Leary said he was “overwhelmed” by institutions asking if he was buying “blood currency from China” after saying he wanted to invest in bitcoin.
I do not buy coin unless I know where it was mined, when it was mined, its origin. Not in China. No blood coin for me.
Kevin O’Leary
Chairman of O’Shares ETFs
Many larger institutions are increasingly imposing restrictions on assets that they will hold to comply with environmental and corporate governance rules. Concerns include human rights and carbon emissions. O’Leary said it is also considering whether products are manufactured in China.
“All of these issues … have now come up about bitcoin,” he said. “Institutions do not buy coins mined in China, coins used with coal to burn for electricity, and coins mined in countries with sanctions on them.”
Institutions say they do not want to endorse China because of human rights issues, he added.
O’Leary personally said he works very hard to ensure that every coin he owns is a complaint.
“I do not buy coins unless I know where they were mined, when they were mined, their origin,” he said. “Not in China. No blood coin for me.”