Mad Money Insights on Bitcoin and MicroStrategy

Mad Money host Jim Cramer advised his audience to buy Bitcoin instead of MicroStrategy on the latest episode of his show.

> “If you want to own Bitcoin, own Bitcoin,” Cramer stated. “I own Bitcoin; you should own Bitcoin. Bitcoin is a great thing to have in your portfolio, but not MicroStrategy, that’s enough.”

Buying Bitcoin or a Bitcoin ETF gives investors direct exposure to the cryptocurrency. In contrast, shares of MicroStrategy serve as a proxy, sometimes correlating with Bitcoin’s changing value but in an indirect manner. This is due to the company owning 471,107 BTC, valued over $46 billion, which ties its value somewhat to Bitcoin. However, MicroStrategy’s stock can be influenced by factors outside of cryptocurrency volatility, making it a more complex investment.

Cramer’s relationship with crypto has been inconsistent. After the collapse of FTX in December 2022, he claimed to have sold all of his cryptocurrency holdings, asserting he wouldn’t engage with crypto again. In October 2023, he warned that he thought “Mr. Bitcoin” was on the verge of a significant downturn, expressing concerns about investing in an asset expected to lose value.

Yet by January 2024, Cramer highlighted Bitcoin’s “remarkable comeback” and claimed it cannot be extinguished. “It’s a reality, and it’s a technological marvel. People must start recognizing it’s here to stay, despite the SEC’s opposition,” he noted on CNBC.

Currently, Bitcoin is trading just above the $100,000 mark after a recent price drop, while MicroStrategy’s shares remain close to record levels at $347.92 in pre-market trading.