The extended lean run of cryptocurrencies has not deterred businessman and Shark Tank host Kevin O'Leary, and he just disclosed that cryptos and related investments make up a significant chunk of his investment portfolio.
What Happened: Millions of dollars, or 20% of O'Leary's portfolio is made of cryptocurrencies and blockchain, the celebrity investor said in an interview on CNBC's Squawk Box.
He also argued that Bitcoin is not a coin, but it's software.
"If you own Microsoft Corporation MSFT, if you own Alphabet, Inc. GOOGL (GOOG), why not own Bitcoin BTC/USD," he asked.
When probed on the risk of some cryptocurrencies going under, O'Leary said he has hedged against the risk.
"You have to be diversified. I own 32 different positions, including equity FTX itself," he said in the CNBC interview.
O'Leary, who will be the keynote speaker at the inaugural Benzinga Psychedelics Capital Conference on April 19, also stated that he owns them all, as it isn't very clear which cryptos will emerge as winners.
Related Link: He Called Bitcoin 'Pure Gold': Apple Co-Founder Says BTC Is Going Much Higher
Commenting on President Joe Biden's executive order signed this week, O'Leary said it wasn't an outright ban and therefor it's good news. He, however, expressed worries about questions raised on the climate risk associated with Bitcoin mining.
O'Leary also said in the interview that he has exited positions in publicly-traded Bitcoin mining firms following the executive order, although he remains invested in a private mining company.
Why It's Important: Earlier in February, O'Leary said in an interview that Bitcoin won't go through the roof until wealth and pension funds add BTC to their portfolios. He recommended that institutions strive toward having 1-2% of their portfolios in Bitcoin.
O'Leary indicated that more clarity on regulations in the U.S. could kick-start a rally in Bitcoin.
After Biden's executive order, Bitcoin and other cryptocurrencies have not moved out of their recent lackluster trading ranges.
At last check, Bitcoin was seen slipping 0.42% to $38,940.59.
Related Link: Why This Analyst Thinks Bitcoin Is Unlikely To Be Challenged By Altcoins
Photo: Courtesy of Ontario Chamber of Commerce on Flickr
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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