Bitcoin

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<p>Famous CNBC host Jim Cramer recently took aim at business intelligence MicroStrategy.</p>
<p>The 69-year-old “Mad Money” host recently warned his audiences against buying the company’s stock.&nbsp;</p>
<p>Those who want to get exposure to Bitcoin should purchase the largest cryptocurrency directly, according to Cramer.&nbsp;</p>
<h2 id="the-bull-case">The bull case&nbsp;</h2>
<p>MicroStrategy has substantially outperformed Bitcoin on a year-to-date basis.&nbsp;</p>
<p>According to investment banking company TD Cowen, the stock could experience a significant surge this year.&nbsp;</p>
<p>Institutions <a href="https://u.today/swiss-banking-giant-ubs-jumps-on-bitcoin-etf-train?amp">dipping their toes</a> into Bitcoin ETFs could prove to be a major bullish catalyst for MicroStrategy, according to TD Cowen.&nbsp;</p>
<p>The company has also been predicted to benefit from the widely expected rejection of Ethereum-based spot ETFs later this month.</p>
<p>Saylor has predicted that Bitcoin ETFs would not pose a threat to MicroStrategy since ETFs charge fees. At the same time, MicroStrategy provides holders with “intelligent leverage” without charging a fee.&nbsp;</p>
<h2 id="microstrategy-s-q1-results">MicroStrategy’s Q1 results&nbsp;</h2>
<p>Last month, the company reported a quarterly net loss of $53.1 million. The Bitcoin-related paper gains recorded by MicroStrategy in Q1 were not reflected in the recent report since the firm is yet to opt for the new accounting rule.&nbsp;</p>
<p>Last month, broker Benchmark said that the company could be included in the S&amp;P 500 index if it were to adopt the new accounting standard.</p>
<p>Last year, the Financial Accounting Standards Board (FASB) <a href="https://www.bloomberg.com/news/articles/2023-12-19/bitcoin-etfs-won-t-be-a-threat-to-microstrategy-mstr-saylor-says">allowed</a> companies to report digital currencies on their balance sheets at fair value starting from 2025. However, the new accounting rules could be adopted earlier.&nbsp;</p>
<h2 id="a-wild-ride">A wild ride&nbsp;</h2>
<p>MicroStrategy is riding high because of the Bitcoin bull run. This comes after the company seemingly came on the verge of receiving a margin call in 2022 when the cryptocurrency saw a massive plunge. Cramer taunted Saylor back then on social media:&nbsp;</p>
<p>“The pressure on Microstrategy's stock because of all the borrowing it did against crypto is a little too "obvious." It is hard to imagine they don't have something up their sleeves to prevent this margin call from being triggered? Tell us,” he said.&nbsp;</p>

Jim Cramer Issues Warning About MicroStrategy

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