Kevin O’Leary Bets on Data Centers, Says Most Crypto Tokens Won’t Recover
Shark Tank investor Kevin O’Leary said he is reallocating capital toward data centers and enterprise tech while becoming highly skeptical of most crypto tokens. O’Leary described a clear distinction between utility-driven infrastructure assets — such as data centers that support AI and cloud services — and the majority of speculative tokens that he believes lack sustainable demand. He argued that most crypto tokens will never come back to their former valuations, citing limited real-world use cases and tokenomics problems. O’Leary noted his investment strategy favors cash-generative, regulated or enterprise-facing assets over early-stage tokens. He also discussed risk management, emphasizing liquidity, revenue models, and regulatory clarity when evaluating digital-asset exposure. The remarks highlight a continued institutional shift toward infrastructure and revenue-producing tech amid skepticism about broad token recoveries. Key takeaways for traders: re-evaluate exposure to speculative tokens, consider infrastructure and enterprise plays (data centers, cloud, AI support), prioritize liquidity and revenue-backed assets, and monitor regulatory developments that shape token viability.
Neutral
O’Leary’s comments signal a broader institutional preference for revenue-generating infrastructure (data centers, enterprise tech) over speculative tokens. For traders, the immediate effect is likely neutral rather than decisively bullish or bearish across the whole crypto market. Short-term: heightened negative sentiment toward low-quality, illiquid tokens could pressure their prices, increasing volatility and prompting deleveraging or token-specific sell-offs — a bearish feel for those assets. Conversely, infrastructure-related equities and crypto projects with clear utility may attract flows, offering pockets of bullishness. Long-term: a structural shift toward assets with real revenues and regulatory clarity may reduce speculative froth and improve market resilience, which is ultimately constructive for institutional adoption. Similar past patterns: after prior bear-market deleveraging (2018–2019, 2022), capital rotated toward infrastructure, custody, and regulated services while many small-cap tokens failed to recover. Traders should: reduce exposure to speculative, low-liquidity tokens; size positions for higher volatility; favor assets with clear cash flows or enterprise use cases; and watch regulatory signals that can accelerate revaluation.