Shark Kevin O’Leary Warns Crypto Miners; Here’s Why

Olivia Brooke
February 6, 2022
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

ABC’s Shark Tank star, Kevin O’Leary, has sounded a warning that environmental, social, and governance (ESG) reporting is going to shake up the Bitcoin mining industry.

While many key players are currently focused on Bitcoin’s price performance, O’Leary is more concerned about the dangers that the Bitcoin mining industry can pose for the market. O’Leary stated during a recent interview, that Bitcoin mining companies who did not obtain their energy from non-carbon emitting sources had no chance of passing a carbon audit. This is because the process for tracking carbon credits is rife with uncertainty. His take is a reaction to the annual investor letter sent out by Larry Fink, the CEO of BlackRock.

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ESG is no longer a joke, says Shark Tank star Kevin O’Leary

Kevin O’Leary, also known as Mr. Wonderful and made popular by his hosting ABC’s Shark Tank reality show, has called out Bitcoin mining firms that utilize carbon credits to try to stay carbon neutral.

Speaking in a recent interview, O’Leary warned that such miners were likely going to run into trouble with getting financing. This is because most financiers would steer clear of them to keep up with the Environmental, Social, and Governance (ESG) mandates that are rapidly gaining a lot of weight.

 Writing is on the wall for public Bitcoin mining companies that think they can fool investors by buying carbon credits to cover up their dirty, carbon belching ways. They will never survive a carbon audit, Kevin O’Leary said.

He opines that utilizing carbon credits instead of actual green energy sources is one reason Bitcoin mining was getting a bad rep, and governments around the world were going after the activity. O’Leary outrightly calls Bitcoin miners who utilize carbon credits, like Marathon and Riot, a “scam.”

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A piece of advice for ESG conscious investors

O’Leary shared concern that ESG, metrics that firms are using to measure their long-term sustainability, could cause a lot of investors to run into trouble if they did not available carbon credit buying Bitcoin miners.

His reason is that pressure was been put on investors and firms to become ESG compliant by BlackRock, one of the biggest assets managers in the world. BlackRock’s CEO, Larry Fink, in his annual investor note stated that the multinational asset manager would sever ties with any of its clients that failed to implement ESG in its operations.

Going by this, O’Leary advised that investors should look at the ESG profiles of the Bitcoin mining firms they invest in to see if they pass the “ESG smell test.” Using himself as a case study, he said:

 I’ve sold off those positions, and now I’m investing in miners that are doing it off hydro, wind, and solar so I don’t get in trouble…from institutions who have those sustainability mandates.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Olivia’s interests spans across the Cryptocurrency and NFT and DeFi industry. She remains as fascinated by cryptocurrencies today, as she was back in 2017, when she first started reading up about them.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.