7 Stocks on Jim Cramer’s Radar

2. Strategy Inc (NASDAQ:MSTR)

Number of Hedge Fund Holders: 43

Strategy Inc (NASDAQ:MSTR) is one of the stocks on Jim Cramer’s radar. Cramer highlighted the company’s debt to buy Bitcoin. He stated:

“I want you to understand that Bitcoin has a peculiar, almost unknown hold, maybe I should say choke hold, on much of the market because as I painstakingly detailed in this weekend’s investing club think piece, if you add up all the crypto derivatives, it makes up a surprisingly substantial chunk of the entire stock market. Unlike equities, there’s a bet the farm aspect to crypto that threatens the averages every time Bitcoin sells off like it’s doing now. Of course, crypto comes in many forms.

There are those who hold it as a store of value against economic catastrophe… There are those who think it can be used as a currency itself, if not now, then perhaps in the future. There are investors, many of whom have made fortunes until recently, and then there are the speculators who borrow money to buy crypto simply because they believe it’s headed higher. Here I’m thinking mainly of a company, an actual company called Strategy, formerly MicroStrategy, that’s simply become a leveraged bet on Bitcoin itself.

Michael Saylor, frequent guest on Squawk Box and also the CEO of Strategy, is a true believer to the point where he’s willing to take more than… $8 billion in debt to buy additional Bitcoin. Hey, look, that’s a terrific position when Bitcoin’s going up, but it’s a disaster when Bitcoin’s going down. There’s always a contingent in the market who views Saylor as a wannabe Humpty Dumpty. They’re just wondering if this fall means all the crypto’s horses and all the crypto’s men won’t be able to put Strategy together again.”

Strategy Inc (NASDAQ:MSTR) provides investors with exposure to Bitcoin through a mix of equity and fixed-income securities. In addition, the company offers AI tools that help businesses understand their data and make better decisions.