Cloud Mining and Data Center Infrastructure: Kevin O'Leary's Investment Strategy for the Future

Kevin O’Leary, the renowned investor from Shark Tank, argues that the true source determining the future of the crypto and artificial intelligence sectors is not monetary investment but physical infrastructure and cloud mining capacity. Pursuing this vision, O’Leary is not only investing; he is also concretizing his strategy to build the future.

In this period where a $3.2 trillion value is expected in the crypto market, most of the institutional capital is concentrated on core networks like Bitcoin ($78.43K) and Ethereum ($2.44K). This helps explain why technical infrastructure and services like cloud mining have become so important.

26,000 Acres of Land Infrastructure Strategy

The foundation of O’Leary’s strategy is quite tangible: controlling a total of 26,000 acres of land—13,000 acres in the Alberta region of Canada and another 13,000 acres in unspecified areas. These lands, ready for cloud mining and AI data centers, will be equipped with infrastructure prepared for operational start.

O’Leary’s model is inspired by traditional real estate development logic: “Just as a building contractor seeking to build skyscrapers constantly searches for new land, mining and AI companies are in the same situation.” However, his approach is different. He does not want to build data centers himself; instead, he wants to prepare land and energy sources and lease them to companies. “My job is not to build a data center but to prepare permits ready for digging,” he says.

A particularly notable point is O’Leary’s belief that energy contracts providing power at less than six cents per kilowatt-hour are more valuable than Bitcoin. In power-intensive operations necessary for cloud mining, these energy prices offer a long-term competitive advantage. Developed considering fiber, water, air rights, and full infrastructure, these lands can provide a more stable value than Bitcoin itself.

Additionally, O’Leary foresees that about half of the announced data centers will never be built. Most projects announced in the last three years are described as “land grabbing without understanding the necessary infrastructure.” Those who own land and energy resources will have a long-term advantage in the sector.

Factors Making Bitcoin and Ethereum Dominant

Another interesting fact about the deepening institutional capital in the crypto market is that the major players moving markets are almost exclusively interested in Bitcoin and Ethereum. Although recent ETF entries have attracted some individual investors, they have limited impact from an institutional perspective.

Data clearly shows this: just two positions are enough to capture 97.2% of all market volatility. Charles Schwab estimates that nearly 80% of the $3.2 trillion market cap in crypto is tied to main blockchains like Bitcoin and Ethereum. Despite thousands of new projects, this concentration of value does not bode well for most tokens in the market.

“All the worthless coins are still stuck with losses between 60% and 90% and will never return to their former states,” summarizes O’Leary. This analysis indicates that most beginners are making long-term investments with no return.

Regulation: The Gateway to Institutional Adoption

So, what will motivate large financial institutions to go beyond Bitcoin and Ethereum? According to O’Leary: regulation. He states that real change will come through an appropriate legal framework.

The crypto market structure bill currently being worked on in the US Senate is a significant part of this framework. However, O’Leary critically addresses a clause in the current draft that bans stablecoin yield accounts. “This is an uneven playing field,” he says. Such restrictions unfairly advantage traditional banking and disadvantage crypto companies.

This disagreement is so significant that major exchanges like Coinbase have withdrawn their support for the bill. In Q3 2025, Coinbase reported only $355 million in revenue from stablecoin yield offerings. This figure clearly illustrates the economic dimension of the issue.

“Unless we allow stablecoin users to earn yields on their accounts, this bill will likely be blocked,” O’Leary states as a clear condition. Crypto companies—especially USDC issuer Circle and its partner Coinbase—are seeking to be rewarded for the potential revenue streams from these products. Other crypto firms see regulatory concerns around DeFi, securities rules, and oversight mechanisms as additional worries.

Strategy of Allocating 19% of Portfolio to Crypto and Infrastructure

O’Leary himself acts according to his own strategy. He has allocated about 19% of his portfolio to crypto-related investments, including digital assets, infrastructure, and land. This is not just a speculative move; it reflects a long-term investment thesis.

His prior investments in data centers in Norway, Finland, and North Dakota, such as BitZero, demonstrate the consistency of this vision. Taking positions in energy infrastructure players providing cloud mining operations and high-performance computing services shows that O’Leary finds the infrastructure philosophy more attractive than crypto itself.

His optimism about refining his plan indicates that once the legal framework is in place, a large-scale institutional allocation toward Bitcoin will open the way. In this case, early movers in cloud mining and data center infrastructure could become sector winners. This new framework, where building infrastructure rather than just acquiring crypto is emphasized, is seen as a sign of the crypto sector maturing.