According to Kevin O'Leary, he has allocated 20% of his investment portfolio to cryptocurrency, which includes tokens and blockchain companies.

• On Friday, CNBC reported that one-fifth of Kevin O’Leary's investment portfolio is invested in crypto tokens, currencies, and companies.
• In an interview on "Squawk Box," O'Leary stated that he has millions of dollars and 20% of his portfolio is now invested in cryptocurrencies and blockchain.
• Speculation about cryptocurrencies remains a concern for regulators, despite their growing popularity in recent years.

On Friday, Kevin O’Leary, a celebrity investor, disclosed to CNBC that one-fifth of his investment portfolio consists of cryptocurrencies and businesses operating in the burgeoning digital asset sector.

O'Leary stated in a "Squawk Box" interview that 20% of his portfolio is now invested in cryptocurrencies, which run on blockchains, which are digital ledgers distributed across a network.

In recent years, cryptocurrencies have garnered significant interest and investment from both large institutions and notable individuals such as hedge fund manager Paul Tudor Jones and fund manager Bill Miller. Bitcoin, the largest cryptocurrency by market value, is often viewed as a potential long-term store of value. Additionally, there are numerous smaller digital tokens available.

Despite the crypto industry being relatively new, having only existed since January 2009, it is still attracting billions of dollars in venture capital from backers.

The digital asset class is still volatile, and regulators such as Gary Gensler, Chairman of the Securities and Exchange Commission, have cautioned about its "highly speculative" nature and the absence of investor protection. Additionally, the outgoing chair of the U.K.'s financial regulator has warned about pump-and-dump schemes in specific digital tokens.

Charlie Munger, a billionaire businessman and longtime partner of Warren Buffett, has been critical of digital currencies and their volatility. In February, he expressed his wish for the U.S. to ban them. Buffett, too, has expressed his dislike for bitcoin, calling it "rat poison squared" in 2018. Some have compared bitcoin to a Ponzi scheme.

O'Leary considered the risk factor that some cryptocurrencies may not exist in a decade when asked by CNBC's Andrew Ross Sorkin.

"Diversification is crucial, as I hold 32 different positions, including equity in FTX, the cryptocurrency exchange founded by 30-year-old billionaire Sam Bankman-Fried," O'Leary stated, disclosing his role as a paid spokesperson for the exchange.

O'Leary, a co-host of "Shark Tank" and founder of O'Shares ETFs, stated that the main objective is the uncertainty of the outcome. "Is Helium going to win? Is Avalanche going to win? I own them all," he said, emphasizing his investment in both companies.

On Friday, O'Leary made comments about the cryptocurrency industry two days after President Biden signed an executive order directing the U.S. government to analyze the industry. The administration aims to address risks while leveraging the potential benefits of digital assets and their underlying technology.

O'Leary stated that while it was not a complete ban, he had reservations regarding the emphasis on climate risks associated with cryptocurrency in Biden's directive.

Bitcoin mining, which involves verifying transactions on the blockchain network using computers, consumes a significant amount of power. This has led to concerns about its environmental impact.

O'Leary revealed that he has invested in a private bitcoin mining facility but sold his stakes in publicly traded bitcoin mining companies following Biden's executive order.

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