Why Infrastructure Is the True Engine of the Crypto Future — Kevin O'Leary Bets on the Logic Behind Ethereum and Bitcoin

Under the dual drive of cryptocurrency and artificial intelligence, a well-known investor is rewriting the understanding of this industry. Kevin O’Leary from “Shark Tank” has proposed a seemingly simple yet profound investment logic: true value does not lie in the tokens themselves, but in the infrastructure supporting these ecosystems. His latest move—controlling 26,000 acres of land for Bitcoin mining, data centers, and AI infrastructure—is validating this theory.

From Tokens to Land: How O’Leary Redefines Crypto Investment

In a recent media interview, O’Leary revealed that he currently controls 26,000 acres of land across multiple regions, with 13,000 acres in Alberta, Canada (already public), and another 13,000 acres undergoing permitting processes. These lands are developed into fully equipped sites—including power, water resources, fiber optics, and airspace rights—ready to lease to Bitcoin miners and AI data centers.

He compares this model to real estate development. Just as real estate developers seek prime plots to build skyscrapers, Bitcoin mining and AI companies are also looking for land. “My job isn’t to build data centers,” he explains, “but to prepare fully permitted and infrastructure-ready sites that are ready for immediate use.”

He has already validated this strategy through his investment in Bitzero, a company that controls data centers in Norway, Finland, and North Dakota, providing Bitcoin mining and high-performance computing services. The electricity contracts in these locations—some at less than 6 cents per kilowatt-hour—are actually worth more than Bitcoin itself.

Market Reality: Ethereum and Bitcoin Dominate Over 97% of Volatility

O’Leary’s assessment of the entire crypto market is quite harsh. He points out that institutional capital—funds that truly drive the market—are only interested in two assets: Bitcoin and Ethereum. The latest data supports this view.

According to a recent report by Charles Schwab, nearly 80% of the market value in the global $3.2 trillion cryptocurrency market is concentrated in these two foundational blockchains. Even more startling: since the inception of the crypto market, holding just these two assets has been enough to capture 97.2% of overall market volatility.

In contrast, those “low-quality” tokens are in a dire situation. “All these junk coins are still down 60% to 90%, and they will never recover,” O’Leary bluntly states. Although recently launched crypto exchange-traded funds (ETFs) have brought some new interest from retail capital, he believes these tools are almost insignificant for institutional investors. “In the context of financial services and asset allocation, these crypto ETFs are even less than teenage acne… they are completely irrelevant,” he says.

Why Half of Data Center Announcements Will Never Be Built

With the global surge in demand for AI infrastructure, large tech companies and startups are announcing ambitious data center expansion plans. However, O’Leary offers a cold prediction: about half of all data centers announced in the past three years will never be built.

He describes this craze as “land grabbing, with no idea what is needed.” To establish a viable mining or data center operation, first, large areas of land and a continuous supply of cheap electricity are required. This is precisely the core of his investment portfolio—about 19% of his investments are now in crypto-related assets, infrastructure, and land.

His simple theory: if these companies didn’t secure land and power contracts from the start, most of their ambitious announcements will be castles in the air.

Regulation: The Key to Unlocking Institutional Entry

To enable more institutional capital to go beyond Bitcoin and Ethereum into the crypto ecosystem, a regulatory framework is crucial. O’Leary has specific suggestions regarding the ongoing crypto market structure bill in the U.S. Senate.

He particularly criticizes a clause in the bill draft—prohibiting earning yields on stablecoin accounts. “This creates an unfair competitive environment,” he points out. “Unless we allow those using stablecoins to offer yields to account holders, this bill could be blocked.”

This issue is far from trivial. Coinbase earned $355 million in Q3 2025 alone from its stablecoin yield products. USDC issuer Circle and its partner Coinbase hope to offer some form of reward returns. Without this feature, institutional investors will continue to see no reason to enter the modern crypto ecosystem.

O’Leary still believes the bill will be amended, and when that happens, he predicts a wave of large-scale institutional allocation to Bitcoin. This perhaps explains why infrastructure—rather than tokens themselves—is becoming the focus of him and other savvy investors.

Infrastructure is eternal. Ethereum, Bitcoin, and their supporting ecosystems require electricity, land, and permits to operate. And it is these seemingly mundane physical assets that are the true determinants of the future of crypto.