ABC’s “Shark Tank” star Kevin O’Leary; environmental, social and governance (ESG) reporting, Bitcoin miningHe gave a warning that it would shake him.
While most people in the cryptocurrency market have focused on prices in the market, which has been experiencing ups and downs for a while, O’Leary’s focus is more on the threats that the Bitcoin mining industry can pose to the market. In a recent interview, O’Leary stated that he is confident that the Bitcoin mining company, which does not get its energy from carbon-free sources, will be stuck with a ‘carbon audit’. The reason for this will be that the process of tracking carbon credits is full of uncertainties.
ESG Is Not A Joke Anymore!
Mr. Also known as Wonderful, he became popular by hosting ABC’s Shark Tank reality show. Kevin O’Learyhas called on Bitcoin (BTC) mining companies that use carbon credits to try to stay carbon neutral.
According to O’Leary, he also warned that such Bitcoin mining companies would now have a hard time finding financing. This is because most financiers will steer clear of such activities to keep up with Environmental, Social and Governance mandates that are quickly gaining too much weight.
“The falling public that they can deceive investors by buying carbon credits to cover up their dirty carbon gas emissions. Bitcoin (BTC) ‘writing is on the wall’ for mining companies.” Kevin O’Leary thinks they will never recover from a carbon audit.
He thinks that using carbon credits instead of real green energy sources is one reason Bitcoin mining has gotten such a bad reputation, and governments around the world are after the activity. O’Leary openly calls the activities of Bitcoin miners using carbon credits, such as Marathon and Riot, “fraud.”
A piece of advice for ESG-conscious investors
O’Leary shared his concerns that ESG, the metrics firms use to measure their long-term sustainability, could get many investors in trouble if they don’t have the carbon credits that buy Bitcoin miners.
The reason for this is that BlackRock, one of the world’s largest asset managers, puts pressure on investors and companies to be ESG compliant. BlackRock CEO Larry Fink noted in his annual investor note that the multinational asset manager will now sever ties with any client that does not implement ESG in their operations.
However, O’Leary recommended that investors look at the ESG profiles of the Bitcoin mining firms they invest in and see if they pass the “ESG smell test”. Using himself as a case study, he said:
“I sold these positions and now I invest in miners who do it with hydro, wind and solar power so I don’t get in trouble with institutions with these sustainability mandates…”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.