Jim Cramer’s Take on Bitcoin and MicroStrategy
In a recent episode of CNBC’s Mad Money, former hedge fund manager Jim Cramer expressed his support for owning bitcoin (BTC), while advising against investing in MicroStrategy, the largest public holder of the cryptocurrency. Cramer stated, “If you want to own bitcoin, (you) own bitcoin.” He went on to assert, “I own bitcoin, you should own bitcoin. Bitcoin is a great asset to include in your portfolio.”
However, he had a caveat regarding MicroStrategy, ending his remarks with, “But not MicroStrategy,” without delving into further details or reasoning behind this stance. Currently, MicroStrategy boasts an impressive treasury of over 417,107 bitcoins, valued at over $48 billion based on current market prices, making it the world’s largest corporate holder of the digital asset.
Interestingly, there may be a silver lining for both MicroStrategy advocates and bitcoin skeptics in the near future. Historically, Cramer’s recommendations have often experienced an inverse correlation with market movements, leading some to view him as a contrarian indicator. This has even inspired a lighthearted internet phenomenon known as “Inverse Cramer,” which led to the creation of a short-lived Inverse Cramer ETF in 2022, although it was shut down by early 2024.
Looking back to January 2024, Cramer suggested that bitcoin was nearing its peak and recommended investors consider exiting their positions. Surprisingly, since that statement, the asset has surged by more than 100%.
As of now, bitcoin is trading at just over $103,000 during the Asian morning hours, reflecting a 4% increase since Monday.
