Jim Cramer, the host of CNBC's "Mad Money," recently cautioned investors against buying MicroStrategy Inc. (NASDAQ:MSTR) stock for exposure to Bitcoin (CRYPTO: BTC).
What Happened: During the lightning round segment of his show, Cramer advised, "If you want bitcoin, don't buy MicroStrategy. Buy bitcoin," CNBC reported on Tuesday.
MicroStrategy, led by CEO Michael Saylor, is renowned as the largest corporate holder of Bitcoin. The company has been making significant strides in blockchain innovation, including the recent launch of a decentralized identity service called "MicroStrategy Orange," which utilizes Bitcoin's Ordinals inscriptions to offer trustless, tamper-proof, and long-lived decentralized identities.
Why It Matters: The advice from Cramer comes at a time when the cryptocurrency market is experiencing significant movements. On Monday, the top cryptocurrencies, including Bitcoin, surged following the disclosure of investments in spot Bitcoin ETFs by major banks such as Wells Fargo and JPMorgan Chase. This disclosure acted as a major trigger, propelling Bitcoin above $63,000.
Additionally, prominent investor Anthony Scaramucci predicted that Bitcoin, which currently makes up more than 30% of SkyBridge Capital's assets, will eventually reach $150,000 per coin. He attributed his bullish stance to the recent ETF adoptions from BlackRock Inc. and other large financial firms.
Price Action: As per Benzinga Pro, after closing 5.55% higher at $1,245.96 on Monday, MicroStrategy was trading 1.88% lower at $1,222.48 on Tuesday pre-market at the time of writing. Meanwhile, BTC was trading at 1.44% lower at $62,006.75 on Tuesday at the time of writing.
Image via Shutterstock