Jim Cramer on Strategy Inc: “If We Want to Have Bitcoin Exposure, We Buy Bitcoin”

Strategy Inc (NASDAQ:MSTR) was among Jim Cramer’s latest stock calls, as he advised investors on how to manage data center-related stock positions. Toward the end of the lightning round, when a caller asked about the stock, Cramer said:

No, no, no, no. We buy the Bitcoin. We don’t need Strategy. That’s too derivative. We just go buy Bitcoin. If we want to have Bitcoin exposure, we buy Bitcoin.

Photo by bitcoin executium 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. Cramer showed a similar sentiment when he was discussing the company during the January 5 episode, as he remarked:

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?

While we acknowledge the potential of MSTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years