Jim Cramer Says “Strategy Has Become Nothing More Than a Leveraged Bet on Bitcoin”

Strategy Inc (NASDAQ:MSTR) is one of the S&P 500 and Nasdaq-100 stocks Jim Cramer commented on. Cramer noted that there are “better ways” for Bitcoin exposure, as he said:

“Alright, how about the worst performers in the Nasdaq-100 last year? At the very bottom of the index was Strategy… formerly known as Micro Strategy, which ended the year down 47.5%. Now, this is the original Bitcoin treasury strategy company, meaning a company that’s just buying crypto for its own account. For all intents and purposes, Strategy has become nothing more than a leveraged bet on Bitcoin. You like Bitcoin? Go buy Bitcoin. See, the leveraged bet worked great when Bitcoin was going higher, but not so great when it started pulling back like it’s been doing for the past three months, although it did have a nice bounce from the bottom at the end of the year. It’s nice today. My view, if you want Bitcoin exposure, avoid this one. There’s better ways, okay?”

Bitcoin, mining

Photo by andre-francois-mckenzie on Unsplash

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.

While we acknowledge the risk and potential of MSTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSTR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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