Cramer Prefers Bitcoin Over Strategy Inc for Crypto Exposure
During a recent episode of Mad Money, host Jim Cramer discussed the Nasdaq 100's performance and questioned investing in Strategy Inc. (NASDAQ:MSTR) as a way to gain Bitcoin exposure. Despite the company's 76% rally, Cramer advised that those interested in Bitcoin should simply buy the cryptocurrency directly.
Strategy Inc. continued expanding its Bitcoin holdings in September, acquiring 1,665 Bitcoin for $142.7 million. As of September 28, the company held 847,666 Bitcoin, with an aggregate acquisition cost of $63.95 billion. Strategy also reported substantial cash reserves, including $5.02 billion designated for preferred-stock dividends and debt interest, plus an additional $1 billion in cash. The company repurchased approximately 1.53 million shares of its STRC preferred stock for $151.7 million during the same period.
Strategy's financial results remain heavily influenced by Bitcoin's price fluctuations. In the second quarter, the company reported an operating loss of approximately $8.33 billion, largely due to unrealized digital-asset losses. To fund preferred dividends, Strategy sold approximately $218.4 million of Bitcoin by July 26, 2026. The company also engaged in new equity issuance, selling 1.47 million common shares for $246.2 million during September 21-27 to support Bitcoin purchases and preferred-stock repurchases.
Comparing Strategy to its peers, BitcoinTreasuries.net's data showed Strategy's enterprise-value-to-Bitcoin-holdings multiple at approximately 1.14x, higher than Metaplanet's 0.72x. Additionally, Insider Monkey's database revealed that 37 hedge funds held Strategy Inc. in Q2, up from 32 in the previous quarter. Renaissance Technologies increased its stake by 20% to 2.55 million shares, making it the most prominent hedge fund holder. Short interest stood at 8.15% of the public float, indicating significant short exposure.