Kevin O’Leary Breaks Down His Crypto & Metaverse Investment Strategies

  • In an exclusive interview with Insider, “Shark Tank” investor Kevin O’Leary explained his strategy for investing in the burgeoning digital landscape.
  • O’Leary said he applies his decades of experience as an index and stock investor to his crypto and metaverse portfolio.
  • He also said that he views bitcoin, solana and other cryptocurrencies as software, not tokens.

Venture capitalist and ‘Shark Tank’ star Kevin O’Leary — aka Mr. Wonderful — casts a wide net for its cryptocurrency and Web3 investments, with each bet drawing on his decades of experience as a financial services professional and index investor.

Since there are currently 11 sectors in the S&P 500, most experts generally recommend placing no more than 20% in a sector and no more than 5% in a stock.

O’Leary applies this strategy to its crypto portfolio and predicts that crypto, blockchain and innovative financial services will become the 12th sector in the S&P 500 within a decade. Today, he holds 32 positions in the digital asset industry, including solana, bitcoin and blockchain company Polygon. No position takes up more than 5% of the allocated 20%, he explained.

“Bitcoin is not a currency, it is software,” O’Leary told Insider. And the same goes for other tokens like ethereum, helium and solana, he noted.

“If you think software has long-term economic value, you can give it a 5% weighting as part of your operational mandate. My key positions are those that I think look like a great economic proposition.”

in the metaverse

This approach applies to investing more broadly in Web3, the concept of the next iteration of the Internet based on blockchain technology and more decentralized.

O’Leary advocates strong diversification “because you have no idea what’s going to work.” Only one or two winners of the 10 positions can pay all losers, he added.

When O’Leary considers investing in a company, especially in the burgeoning Web3 space, O’Leary first determines what problem is being solved and whether that problem has economic value.

“What do you do to make something cheaper, faster, better, more transparent, controllable? All of these stats should have a weighting,” O’Leary said. “If you can’t see the economic value of something, it probably won’t survive in the long run.”

So does the investment in Polygon, which recently raised $450 million in a financing round involving O’Leary, Sequoia Capital India, Tiger Global and Galaxy Digital.

He is confident in supporting the blockchain protocol as it focuses on reducing gas costs for transactions, which O’Leary sees as a significant economic benefit.

Meanwhile, the venture capitalist said he hasn’t bought any metaverse property yet, while waiting to see if an organized or disorganized metaverse emerges as a leader.

More organized metaverse locations, O’Leary explained, will be hot spots for economic transactions and big brand advertising. However, disorganized metaverse locations are likely to have less attractive businesses, such as virtual pawnshops or smokehouses, and lesser-known brands.

When the time comes, O’Leary expects to find a location among other companies that fits his own vision.

“Je mettrais probablement d’abord quelque chose comme mon entreprise de vin dans le métaverse organisé, et j’y ferais de la publicité et fournirais des jetons pour les transactions, tant que c’est un endroit où je me sens en sécurité pour ma Mark.”

Leave a Comment