From Steel and Electricity, Kevin O'Leary's Focus is on True Value

The well-known investor Kevin O’Leary has announced a major change in his investment strategy. Instead of supporting numerous altcoins, he is directing his capital toward projects with physical backing—especially infrastructure related to energy, land with natural gas deposits, and other natural resources like copper. This new perspective reflects a deeper understanding of what truly drives value in the digital asset ecosystem.

Strategy Shift: From Altcoins to Physical Infrastructure

This is not just a simple preference change for O’Leary—it’s a fundamental recalibration of where attention should be focused in the crypto economy. In October, he sold 27 different positions, based on a straightforward observation: sovereign wealth funds and large indexers are only focused on Bitcoin and Ethereum. In his analysis, these two digital assets contain over 97% of the “alpha” or excess returns in the market. All other tokens, in his view, are effectively worthless for large allocators.

For O’Leary, the goal is simple—follow the money and the logic. If leading funds are choosing Bitcoin and Ethereum, and everything else is struggling to gain traction, why invest in things without long-term fundamental support?

Why Energy and Copper Are More Critical for Bitcoin Mining and AI

But the most interesting aspect of this angle is not the retreat from altcoins—it’s the active movement toward energy infrastructure. Bitcoin mining and the growth of AI consume enormous amounts of electricity. Entities controlling energy supply have a significant competitive advantage. Therefore, O’Leary has secured strategic agreements on stranded natural gas lands in Alberta and the US—locations perfect for mining operations.

This also includes his focus on copper, a critical mineral for electrical transmission and infrastructure. Over the past 18 months, copper prices have increased nearly fourfold for these projects. This is no accident—copper is essential for energy grid expansion, renewable energy infrastructure, and all electrical systems needed for a modern economy.

His thesis is direct: electricity has become more important than Bitcoin itself because there is no Bitcoin mining without power. There are no AI operations without reliable energy supply. Control over energy resources and access to strategic materials like copper are more fundamental than any blockchain technology.

The New Category of Infrastructure Play

With this realignment, O’Leary views platforms like Robinhood and Coinbase through a different lens—not as altcoin speculation vehicles, but as essential infrastructure. He calls Robinhood a key bridge for managing both equity and crypto in a single portfolio, while Coinbase is the “de facto standard” for businesses to process stablecoin transactions and vendor payments—especially once regulatory clarity acts have been passed.

This is a pragmatic view: infrastructure plays will never lose value regardless of market direction. No matter how crypto regulation and adoption evolve, companies like Coinbase need to be bridges to traditional finance. Companies like Robinhood need to offer user-friendly access to digital assets.

The Regulatory Path and the “Clarity Act”

No significant capital inflow into the crypto space will occur until regulatory uncertainty is resolved, according to O’Leary. The “Clarity Act,” expected to be released in mid-May, will be a pivotal moment. This law aims to provide legal certainty in the stablecoin market—an area where a real breakthrough can be seen.

His point here is ethical and economic: it is unjust that banks earn interest on deposits while stablecoin holders have no yield or protection. He says this is “not American,” implying that it is unfair competition. Regulatory clarity will open the door for large sovereign wealth funds willing to allocate billions into crypto assets.

Funds managing $500 billion are ready to allocate up to 5% to the digital asset class—but are currently held back by compliance departments. This is not an emotional decision for them; it’s purely a calculation of liquidity and potential alpha. They are agnostic about which blockchain or token will succeed—they only know where the risk-reward ratio is favorable and where the regulatory environment is clear.

Real-World Impact: Emerging Trends in the Crypto Ecosystem

Amid these major strategic shifts, new trends are emerging that point to different directions of crypto adoption. For example, Pudgy Penguins has become one of the strongest NFT-native brands of this cycle. From pure speculative “digital luxury goods,” it has evolved into a multi-vertical consumer IP platform with a phygital strategy. The ecosystem has over $13M in retail sales, 1M+ units sold, and 500k+ downloads of Pudgy Party in just two weeks.

This approach—first acquiring mainstream users through toys and retail, then onboarding them into Web3 via games and tokens—is more sustainable than pure speculation. It aligns with O’Leary’s logic: infrastructure and real utility will be the long-term winners.

On the tokenomics side, XRP demonstrates strengthening investor interest despite price volatility. The spot XRP ETF has gained $91.72 million in net inflows this month, bucking the trend of sustained outflows from Bitcoin ETFs. This signals that the market is differentiating—not all crypto holdings are treated equally, and investor interest is directed toward those with specific utility and clear regulatory pathways.

Thinking Beyond the Hype

The deepest implication of O’Leary’s shift is this: the crypto market has matured beyond the guessing game phase. Sophisticated capital makes decisions based on fundamentals—energy access, infrastructure, regulatory clarity, and real utility. Copper and electricity are not glamorous, but they are the foundation of the entire economy, digital or not.

The Clarity Act and the regulatory clarity it will bring will open a new chapter where large money can enter with confidence. But before that, real wealth creation is happening in infrastructure, energy access, and the materials the world needs. This is the new narrative of crypto investing: from speculation to fundamentals.