Jim Cramer Picks Bitcoin Over Microstrategy's Stock

Jim Cramer, host of CNBC's Mad Money, shared his insights on bitcoin and Microstrategy's stock (Nasdaq: MSTR) during his show's Lightning Round segment this week.

CNBC’s Mad Money host Jim Cramer chose bitcoin over Microstrategy’s stock (Nasdaq: MSTR) during the Lightning Round segment of his show this week, calling the cryptocurrency “a winner.”

Cramer Prefers Bitcoin to Microstrategy’s Stock

A caller told Cramer on Monday that he has owned Microstrategy’s stock for a “long time” since 2023 and is currently up over 1,000%. He told the TV host that he has “no plans on selling it” and intends to buy more after today’s correction.

“I love what the CEO does. He’s the man, the myth, the legend — Michael Saylor. The stock is Microstrategy.”

As previously reported, Saylor, now executive chairman and previously the CEO of Microstrategy, has steered the company to amass the largest corporate holdings of bitcoin. Recently, Microstrategy announced a three-year initiative to raise $42 billion in common stock to acquire additional BTC.

Cramer responded to the caller as follows, regarding MSTR stock:

“MSTR—we used to call that Mister. I’ve got to tell you, it’s a bitcoin play. I prefer to actually own bitcoin.”

He added that Citron put “some sort of short on it,” and concluded:

“All I can tell you is own bitcoin. That’s a winner.”

The Mad Money host’s comments highlighted his preference for BTC itself over businesses that are heavily invested in the cryptocurrency, such as Microstrategy.

Cramer Initially Invested in Bitcoin, Later Exited

Cramer’s relationship with bitcoin has changed over the years. He initially made a foray into bitcoin investments but later decided to cash out, expressing concerns over the cryptocurrency’s uncertain trajectory. By late 2022, he was urging investors to sell out of cryptocurrency altogether, warning of market instability. However, a year later, he softened his stance, admitting that his earlier caution may have been premature and advising those interested in bitcoin to consider buying it.

In early 2024, amid a strong bitcoin rally, he observed, “You can’t kill it,” highlighting the cryptocurrency’s resilience against economic downturns and regulatory pressures. He further described Bitcoin as a “technological marvel,” a stark contrast to his prior criticisms.

Despite Cramer’s evolving views, not all listeners follow his advice. The “Inverse Cramer” meme has gained popularity in cryptocurrency circles, poking fun at what some perceive as a trend where bitcoin prices often move counter to Cramer’s predictions. When he projects a bearish outlook, bitcoin frequently surges; when he expresses optimism, its value often declines.