Jim Cramer Recommends Buying Bitcoin Over MicroStrategy

In January 2024, Jim Cramer suggested that bitcoin (BTC) was nearing its peak and advised investors to exit. Since then, bitcoin has seen a more than 100% increase.

On a recent segment of CNBC’s Mad Money on Monday, former hedge fund manager Jim Cramer recommended investing directly in bitcoin (BTC), but not in its largest publicly traded holder, MicroStrategy.

“If you want to own bitcoin, just own bitcoin,” Cramer said when responding to a caller’s question. “I own bitcoin, and I think it’s a great asset to have in your portfolio. You should own it too.”

However, Cramer cautioned against investing in MicroStrategy, which holds over 417,000 BTC, worth more than $48 billion at current prices. Despite not providing specific reasons for his view, he emphasized that owning bitcoin directly is a better option.

While Cramer’s advice might seem to discourage investment in MicroStrategy, there could be some contrarian optimism for those bullish on the company and bearish on bitcoin. Historically, Cramer’s picks have been known to go against the general market trend, which has sparked the meme theory of “Inverse Cramer.” This led to the creation of the short-lived Inverse Cramer ETF in 2022, which was dissolved in early 2024.

As of Monday, bitcoin was trading at just over $103,000, up 4% from the previous day, indicating positive momentum.