Jim Cramer says he’d prefer Bitcoin over MicroStrategy stock: here's why

Famed investor Jim Cramer continues to see upside in Bitcoin despite its massive year-to-date rally.

Post-election optimism has sent Bitcoin price soaring to new highs of around $99,000 – and crypto-related stocks have rallied with it as well.

Still, the Mad Money host dubs BTC a much better pick than the likes of MicroStrategy Inc (NASDAQ: MSTR).

MSTR has pulled back in recent sessions but is still up more than 200% versus its recent low.

Cramer sees Bitcoin as a winner

Note that Cramer has not always been this constructive on the largest cryptocurrency by market cap.

He once said, “I want to stay away from Bitcoin.”

But the asset’s performance made him submit and acknowledge this year that Bitcoin is “here to stay … you can’t kill it.”

Nonetheless, building positions in crypto-related stocks to play the expected strength in BTC has never been his forte.

In April, he recommended a caller to pick Bitcoin over Marathon Digital – just as he recommended it over MSTR last night as “Bitcoin is a winner”.

He’s bullish on Bitcoin also because it’s broadly expected to extend gains in the coming months after the US Federal Reserve lowered its key interest rate by another 25 basis points in November.

Lower interest rates typically make bonds and savings accounts less attractive and help drive capital into risk-on assets like cryptocurrencies.

Citron has a short position in MicroStrategy's stock

Jim Cramer lacks confidence when it comes to investing in MicroStrategy also because Citron Research disclosed a sizable short position in this Bitcoin proxy on Thursday.

The investment firm is betting against MSTR as it’s no longer a software company per se but a Bitcoin investment fund.

And now that investors can park their capital directly into Bitcoin ETFs, chances are that MicroStrategy stock will begin to lose its appeal for those interested in using it as a way to play the expected strength in BTC.

Investing in Bitcoin is “easier than ever” and MSTR volume has “completely detached from BTC fundamentals”. That’s why Citron continues to be positive on Bitcoin but have “hedged with a short $MSTR position,” the investment firm revealed in a recent post on X (formerly Twitter).

Bitcoin could eventually be worth $250,000

Bitcoin may be a smarter decision than investing in MicroStrategy because experts continue to see significant upside in the crypto pioneer.

BCA Research analyst Dhaval Joshi even sees it hitting $250,000 in the coming years.

Why? Because Bitcoin is a “non-confiscatable asset” that currently makes up under 10% of the total market for such assets.

“As BTC share of this market increases, and supply of bitcoins reaches its upper limit, bitcoin’s price has substantial upside,” he told clients in a recent note.

The investment firm also expects the crypto market at large to flourish under a Trump presidency. Our market expert Crispus Nyaga also recently recommended avoiding MicroStrategy shares.