Cramer Says Bitcoin Should Be Part of Every Investor’s Portfolio, Advises Against MicroStrategy Stock

The once bearish Jim Cramer of CNBC has publicly endorsed Bitcoin as a valuable addition to any investment portfolio, urging viewers to directly own the cryptocurrency rather than investing in MicroStrategy.

During a recent episode of Mad Money, Cramer was clear in his recommendation. “If you want to own Bitcoin, own Bitcoin,” he asserted, adding that he personally owns Bitcoin and believes it is “a great thing to add to your portfolio.” This statement marks a departure from his past skepticism toward cryptocurrencies and contrasts sharply with his previous critiques of Bitcoin and other digital assets.

Bitcoin vs. MicroStrategy: A Direct Approach

MicroStrategy, led by its CEO Michael Saylor, is one of the biggest corporate holders with over 470,000 Bitcoins. However, Cramer warned investors that buying the stock of MicroStrategy is not the best way to own Bitcoin, even though this company’s shares are highly influenced by the oscillations in Bitcoin’s price. It also has the added complications of its corporate operations which may make things riskier for investors.

Jim Cramer: “You should own Bitcoin. Source: TiffannyFong via X

“MicroStrategy has a different set of risks because it’s an operating company,” said Cramer, suggesting that if one wants exposure to the potential of Bitcoin, it is considerably easier and clearer to own it directly. His comments fall into a broader trend where some investors, especially traditionally-minded finance investors, have stepped away from indirect bets through vehicles such as Bitcoin Exchange-Traded Funds or derivatives, seeking out the security and transparency of ownership in assets.

Cramer’s Evolving Stance on Cryptocurrencies

Cramer’s relationship with cryptocurrency has been anything but straightforward. He has been quite vocal in his criticism, even going as far as to show solid disdain for digital currencies, especially after the major takedowns of huge crypto entities that included the FTX exchange.

In December 2022, he announced he had sold all of his crypto and “wouldn’t touch crypto in a million years.” But by January 2024, the tune had changed. Cramer himself had previously hailed Bitcoin’s “remarkable comeback” and labeled the digital currency a technological marvel that was “here to stay.”

Jim Cramer is bullish on Bitcoin but he once advised waiting until the price drop below $90K to buy. Source: Rob via X

This evolution in his perspective underlines the increasing, if growing, mainstream acceptance of Bitcoin because of increasing institutional interest and, lately, a much friendlier U.S. regulatory environment. Cramer’s move comes at the right time-when Bitcoin is holding above the 100,000-dollar mark-a sign that major institutional investors now see it as a credible asset class.

Mixed Reactions from the Crypto Community

Cramer’s latest endorsement of Bitcoin has received mixed responses in the cryptocurrency community, with many seeing this as a good step in wider Bitcoin adoption amongst traditional investors, while it cements Bitcoin as an asset even more seriously.

Others, however, remain skeptical, especially given Cramer’s past criticisms. Many in the crypto world have pointed to the so-called “Inverse Cramer” theory, which suggests that whenever Cramer endorses an asset, it often signals the opposite for market movements. Some Bitcoiners have therefore quipped that because Cramer endorses the cryptocurrency, it’s time for a Bitcoin crash.

Cramer’s optimism about Bitcoin was greeted with mixed reactions from the crypto community. Source: X

Despite these mixed reactions, Bitcoin is up more than 100% over the last year proving once again that those who can handle the volatility will do well. Presently trading over $103,000, Bitcoin still proves very strong, while the broader market conditions have mixed opinions.

Looking Forward: Bitcoin as a Long-Term Investment

Jim Cramer’s endorsement of Bitcoin as a core portfolio asset represents growing recognition of the cryptocurrency in mainstream finance. The fact that he is now advising holding the asset directly and not a proxy like MicroStrategy suggests a greater understanding of its underlying value and its potential. To investors, this is a huge moment in how digital currencies have made their way into more traditional investment strategies.

Bitcoin (BTC) price remains above the key psychological $100K level at press time. Source: Bitcoin Liquid Index (BLX) via Brave New Coin

As Bitcoin continues to evolve, investors will likely continue to debate the most effective way to gain exposure to this volatile yet promising asset. Whether Cramer’s latest recommendation will have a lasting impact on the broader financial landscape remains to be seen, but it is clear that Bitcoin’s place in investment portfolios is becoming increasingly accepted by traditional finance experts. Let’s hope the inverse Cramer effect isn’t real.