CNBC host Jim Cramer makes strategic investment in bitcoin

„Market puffer“ Jim Cramer has apparently acquired a taste for Bitcoin.

Three months after notorious stock expert Jim Cramer finally became convinced about Bitcoin after all, he made a well-timed investment in the market-leading cryptocurrency the day before Friday.

In an interview with TheStreet, the CNBC host, who is more like a hamburger puffer, states that he bought The News Spy on Friday morning when the price had slipped below the $18,000 mark. In this context, the host of the program „Mad Money“ explains that he proceeded with the investment in the cryptocurrency as with any other investment product.

„I buy – as I always do – when the price goes down,“ Cramer said. „My portfolio is getting bigger and bigger, which is why I find that you then have to diversify into other asset classes. I own gold, but I still diversify a little bit into bitcoin. Not a big position, but it’s important to diversify. Bitcoin is an investment product and I want to have a balance between my investment products.“

However, Cramer is concerned that the bitcoin price will „go back down sooner or later“ given the cryptocurrency’s historical volatility. Nonetheless, he sees his purchase in the $17,000 range as a „good price.“ To that end, he opines:

„Bitcoin has come back a good bit from the last top. I like to buy something that’s retracing after a ceiling formation.“

The CNBC host has been an explicit critic of Bitcoin in the past. At the time, for example, he opined that the cryptocurrency would eventually „run out of steam.“ However, since being a guest on crypto expert Anthony Pompliano’s podcast in September, Cramer has publicly toyed with the idea of investing up to 1% of his portfolio in Bitcoin.

As of press time, the bitcoin price is back up to $19,192, a gain of 2.6% in the last 24 hours.

Shares: MicroStrategy downgraded for bitcoin, „crypto bank“ becomes new insider tip

While MicroStrategy is „too heavily“ invested in Bitcoin for analysts, a „crypto bank“ is emerging as the new insider tip for investors.

While Citibank has downgraded the stock of software maker MicroStrategy to „sell“ due to its increasing investment in Bitcoin, analysts at trading website Motley Fool are advising investors to buy the stock of a bank that has one of its focuses on cryptocurrencies.

Last Tuesday, Citi analyst Tyler Radke issued the corresponding downgrade on MicroStrategy (NASDAQ:MSTR) stock after the company announced shortly before that it will expand its investment in bitcoin to $1 billion through the sale of corporate bonds.

The related report scolded the software maker, despite the fact that its share price has now more than tripled since its low for the year of $92. The reason for the criticism is that the company’s assets are „disproportionately“ highly invested in Bitcoin, whereas the cryptocurrency’s soaring price would already be „past its zenith.“

The analysts of Motley Fool, on the other hand, are far less critical of cryptocurrencies, so unlike their colleagues from Citibank, they even advise investing in a company that handles them. Accordingly, they recommend investors to buy the stock of the „crypto bank“ Silvergate Capital (NYSE: SI).

California-based Silvergate manages more than $2 billion in assets, with its clients including several well-known crypto companies such as Coinbase, Paxos, Circle, Gemini and Polychain Capital.

Motley Fool editors Matt Frankel and Justin Moser point out that the bank has been profitable for 21 years straight, has $50 million in Bitcoin on its books, and has made mostly commercial mortgage loans. Both analysts even see the bank as a better investment than Bitcoin itself.

In another article from this week, Motley Fool had already pointed out the trading infrastructure that Silvergate has developed for trading cryptocurrencies. The Silvergate Exchange Network (SEN) serves as a middleman between exchanges and institutional investors looking to buy and sell cryptocurrencies. What makes it special is that the network is open for trading around the clock, whereas with normal banks this is only possible during regular working hours.

SI currently has a price-to-earnings ratio of 36.69, pays out, 10.36% dividends and has increased in value by almost 100% this year.

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