Famed CNBC host Jim Cramer recently took aim at MicroStrategy business intelligence.
Famed CNBC host Jim Cramer recently took aim at MicroStrategy business intelligence.
The “Mad Money” host, 69, recently warned his audience not to buy shares in the company.
According to Cramer, those who want exposure to Bitcoin should directly purchase the largest cryptocurrency.
The case of the bull
MicroStrategy has substantially outperformed Bitcoin so far this year.
According to investment banking firm TD Cowen, the stock could see a significant rise this year.
Institutions wetting the toes in Bitcoin ETFs could prove to be a major bullish catalyst for MicroStrategy, according to TD Cowen.
The company has also been forecast to benefit from the expected rejection of Ethereum-based spot ETFs later this month.
Saylor has predicted that Bitcoin ETFs would not pose a threat to MicroStrategy since ETFs charge fees. At the same time, MicroStrategy offers its holders “smart leverage” without charging any commission.
MicroStrategy First Quarter Results
Last month, the company reported a quarterly net loss of $53.1 million. The Bitcoin-related paper profits recorded by MicroStrategy in the first quarter were not reflected in the recent report as the company has not yet opted for the new accounting rule.
Last month, brokerage Benchmark said the company could be included in the S&P 500 index if it adopted the new accounting standard.
Last year, the Financial Accounting Standards Board (FASB) permitted Companies will report digital currencies on their balance sheets at fair value starting in 2025. However, new accounting rules could be adopted sooner.
a wild ride
MicroStrategy is booming due to the Bitcoin bull run. This comes after the company was apparently on the verge of receiving a margin call in 2022 when the cryptocurrency saw a massive drop. Cramer mocked Saylor back then on social media:
“The pressure on Microstrategy stock due to all the borrowing it took against cryptocurrencies is too “obvious.” It’s hard to imagine that they don’t have something up their sleeve to prevent this margin call from triggering? Tell us,” she said.
