Cramer: 'Own Bitcoin, Not MicroStrategy'
Tuesday, Jan 28, 2025 4:03 am ET
3min read In a recent episode of Mad Money, Jim Cramer, the outspoken former hedge fund manager and host of CNBC’s Mad Money, advised viewers to include Bitcoin (BTC) in their portfolios but avoid its largest corporate holder, MicroStrategy (MSTR). Cramer stated, "If you want to own bitcoin, (you) own bitcoin. I own bitcoin, you should own bitcoin. Bitcoin is a great thing to have in your portfolio." However, he offered no further explanation for his stance against MicroStrategy, which holds over 417,107 BTC—valued at more than $48 billion. The company has famously tied its corporate strategy to Bitcoin, with CEO Michael Saylor championing the asset as a cornerstone of its treasury.
Cramer’s financial recommendations have gained a reputation for provoking contrarian responses from market participants. This phenomenon, humorously dubbed the "Inverse Cramer Effect," suggests that the market often moves opposite to his predictions. For instance, in January 2024, Cramer warned that Bitcoin was likely reaching a top and advised investors to exit. Since then, the cryptocurrency has more than doubled in value. Similarly, the short-lived Inverse Cramer ETF, which launched in 2022, aimed to capitalize on this trend before shutting down in early 2024.
Bitcoin continues to gain momentum, trading above $103,000 in Tuesday’s Asian morning hours, up 4% from the start of the week. The rally reflects broader optimism in the crypto market, spurred by increasing adoption and regulatory clarity under the pro-crypto Trump administration. MicroStrategy bulls and Bitcoin investors alike will closely watch the asset’s trajectory in the coming weeks to see if Cramer’s latest remarks fuel further gains—or if the "Inverse Cramer Effect" strikes again.
BTM Market Cap, Closing Price
In conclusion, Jim Cramer’s advice to own Bitcoin directly instead of MicroStrategy stock has sparked speculation among investors, with some viewing it as a potential bullish signal for MicroStrategy and Bitcoin. As the cryptocurrency continues to rally, investors will closely monitor the asset’s performance and the potential impact of Cramer’s latest remarks on the market.
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