Jim Cramer Notes Strategy’s Transformation into a “Bitcoin Accumulation Machine Fueled by Borrowed Money”

Strategy Inc (NASDAQ:MSTR) is one of the stocks Jim Cramer recently looked at. Cramer mentioned the stock during the episode and said:

“In this business, nothing’s harder than spotting bottoms… What matters the most here is not Bitcoin itself, but a company called Strategy run by Michael Saylor, a Bitcoin evangelist who’s adopted what I consider to be a Malcolm X style by any means necessary approach to keep Bitcoin higher. He has a huge amount of money on the line because Strategy has transformed itself basically into a Bitcoin accumulation machine fueled by borrowed money.

Saylor’s a clever guy, and he may be able to forestall the executioner, in which case we’re at the bottom. But if Strategy’s still in trouble, then the company might be forced to sell the largest Bitcoin hoard in the world, at least some of which would produce a furious crescendo of selling. In that case, who knows, maybe Bitcoin goes to $60,000. But the operative and problematic term in that sentence is who knows. When you’re fishing for a bottom, who knows doesn’t cut it.”

Pixabay/Public Domain

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.

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Disclosure: None. This article is originally published at Insider Monkey.