Famed investor Kevin O’Leary says he will only buy bitcoin sustainably mined in countries that use clean energy – and not “blood coins” mined in China.
“I’ll see two types of coins for the next two years,” he told CNBC’s “Capital Connection” Monday. “Blood coins from China, (and) clean coins sustainably mined in countries that use hydropower, 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 to the clean coin side,” said O’Leary.
The chairman of O’Shares ETFs once called bitcoin “garbage,” but recently changed his mind, saying he would allocate 3% of his personal wallet to the cryptocurrency, according to a CoinDesk report.
O’Leary said he was “inundated” by institutions asking if he “buy blood coins from China” after saying he wanted to invest in bitcoin.
I don’t buy coins unless I know where it was mined, when it was mined, its origin. Not in China. Not a blood coin for me.
Kevin O’Leary
Chairman of O’Shares ETFs
Increasingly, many large institutions are imposing restrictions on assets they will hold in order to comply with environmental and corporate governance rules. Concerns include human rights and carbon emissions. O’Leary said whether products are made in China is also a consideration.
“All these issues … have now emerged with bitcoin,” he said. “Institutions will not buy coins mined in China, coins mined using coal to burn electricity, coins mined in countries where sanctions apply to them.”
Institutions say they do not want to support China on human rights issues, he added.
O’Leary personally said he works very hard to ensure that every coin he owns is a complaint.
“I don’t buy coins unless I know where it was mined, when it was mined, its origin,” he said. ‘Not in China. Not a blood coin for me. ‘