Famous CNBC host Jim Cramer recently took an interest in MicroStrategy business intelligence.
The 69-year-old “Mad Money” host recently warned his audience against buying the company's stock.
Those looking to gain exposure to Bitcoin should purchase the largest cryptocurrency directly, according to Cramer.
The affair of the bull
MicroStrategy has significantly outperformed Bitcoin since the start of the year.
According to investment bank TD Cowen, the stock could see a significant rise this year.
Establishments dip your toes Investing in Bitcoin ETFs could prove to be a major bullish catalyst for MicroStrategy, according to TD Cowen.
The company is also expected to benefit from the widely anticipated release of Ethereum-based spot ETFs later this month.
Saylor predicted that Bitcoin ETFs would not pose a threat to MicroStrategy since ETFs charge fees. At the same time, MicroStrategy offers holders “smart leverage” without charging fees.
MicroStrategy First Quarter Results
Last month, the company reported a quarterly net loss of $53.1 million. The Bitcoin-related paper gains recorded by MicroStrategy in the first quarter were not reflected in the recent report since the company has not yet opted in to the new accounting rule.
Last month, broker 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) allowed companies will have to report digital currencies on their balance sheets at fair value starting in 2025. However, the new accounting rules could be adopted sooner.
A wild ride
MicroStrategy is surging due to the Bitcoin bull run. This comes after the company was apparently set to receive a margin call in 2022, when the cryptocurrency saw a massive drop. Cramer then taunted Saylor on social media:
“The pressure on Microstrategy's stock from all the borrowing against crypto is a little too 'obvious'. It's hard to imagine they don't have something up their sleeves to prevent this call from triggering. margin? Tell us,” he said.