Following a significant drop in the price of Bitcoin (BTC), which sank to new 18-month lows on Monday, Jim Cramer, a stock market expert and host of CNBC television’s “Mad Money,” has taken potshots at MicroStrategy CEO Michael Saylor.
Cramer, who has sparked debate with some of his opinions on Bitcoin, slammed the U.S. software company’s BTC ‘strategy,’ which Saylor described as “hodling” – suggesting he has no plans to sell even as prices collapse.
In a tweet, Cramer derided MicroStrategy’s ‘plan,’ saying, “As bitcoin plunges, keep in mind that Microstrategy ‘ s “strategy” is worth watching.”
As bitcoin plunges, keep in mind that Microstrategy ‘ s “strategy” is worth watching
— Jim Cramer (@jimcramer) June 13, 2022
MicroStrategy is in the process of liquidating its Bitcoin holdings, which are worth $1 billion.
MicroStrategy has acquired roughly 129,200 BTC at an average price of $30,700, or about $3.96 billion, with Bitcoin evangelist Saylor at the helm. Its Bitcoin holdings are the largest of any publicly traded firm.
However, the stash’s worth plummeted to $2.97 billion just after the price of Bitcoin fell upwards of 17% in a day to $23,000 on Monday. The Nasdaq-listed business, which delivers business information, mobile applications, and cloud-based services, has lost just under $1 billion.
According to commentators, MicroStrategy is at risk of being liquidated if the Bitcoin price falls below $ 21,000. To purchase Bitcoin, the corporation took out billions of dollars in loans. It utilized its Bitcoin assets as security for a $ 205 million loan from Silvergate Bank in March, allowing it to buy even more Bitcoin.
While Saylor maintains his ‘hodl’ plan, MicroStrategy CFO Phong Le stated in an earnings report earlier this year that in the case of a margin call, the business may have to post extra collateral or liquidate some of its BTC.
MicroStrategy’s stock was down 25 % at $ 152 at the time of publication. The stock lost more than 82% of its value from its all-time high of $ 891 in November last year.
Cramer takes a potshot at Celsius.
The Mad Money host Jim Cramer purchased a considerable quantity of Bitcoin while trading for around $12,000. He sold his holdings for $64,000 in 2021, and the funds were used to “pay off a mortgage.”
He has given conflicting signals about cryptocurrency, but he has also advised investors to deposit at least 5% of their portfolios in digital assets, particularly Bitcoin and Ethereum, which he considers “genuine.”
Cramer used the chance to slam crypto lender Celsius as the market fell on Monday. Celsius may be facing a serious liquidity shortage, which has led it to restrict account withdrawals. He stated, “
“When i had SEC Chairman Gary Gensler on last year we talked about how it was possible that i was getting 8% on my crypto balance and he said it wasn’t; as the Celsuis Community just found out.”
When i had SEC Chairman Gary Gensler on last year we talked about how it was possible that i was getting 8% on my crypto balance and he said it wasn’t; as the Celsuis Community just found out
— Jim Cramer (@jimcramer) June 13, 2022
Cramer feels that Silicon Valley tech professionals have begun to regard the cryptocurrency industry as a scam that has enriched Bitcoin evangelists at the expense of average investors.
The Crypto market is in the firm grip of bears.
Meanwhile, Bitcoin, which plunged nearly 21 % in the last two days to lows of $ 20,842, has recovered slightly to $ 22,775. And Ether kissed $ 1,075 and recovered back to around $ 1,225 at the time of writing.
