Mad Money host Jim Cramer has applauded Elon Musk and Tesla for their bitcoin investment. He said that Tesla, Paypal, and Mastercard are pushing bitcoin more into the mainstream. He believes that more companies should do more with their cash as Tesla did.
Jim Cramer on Tesla, Paypal, and Bitcoin
Jim Cramer shared his views Monday on bitcoin and Elon Musk’s Tesla investing $1.5 billion in the cryptocurrency on The Street. Cramer is the host of Mad Money on CNBC and a former hedge fund manager who co-founded the financial website Thestreet.com.
He discussed Tesla stock which has been steadily climbing over recent months and news that the company has invested in bitcoin. According to the filing with the U.S. Securities and Exchange Commission (SEC), published Monday, Tesla invested $1.5 billion in bitcoin in January. In addition, the company plans to accept BTC as a form of payment for its products.
Cramer was asked if Tesla’s announcement pushes bitcoin more into the mainstream. “I think it is,” the Mad Money host replied, adding that “So do Paypal’s and Mastercard’s announcements.” He continued, “I noticed that Mastercard is doing work with crypto but they don’t talk about it as much as they should,” elaborating:
Do I think that Tesla did the right thing? Absolutely. I have always felt that companies should do more with their cash than just keep it in short term … I completely applaud Tesla. Once again they are at the forefront.
Commenting on people buying dogecoin because Elon Musk talked about it, he said, “I find the synergies between what Elon Musk stands for and what Tesla is doing with its balance sheet and what Paypal is saying people want … makes it seem kind of, not ho-hum, but of course.”
Cramer also talked about the bitcoin advice he previously gave to his viewers. The Mad Money host bought and recommended his viewers to buy BTC when it dropped to about $12,000. “They switched some of their gold, which I always thought is important allocation, to bitcoin,” Cramer said. He noted that he did exactly what he said for his own investment.
He bought bitcoin and regarded it as a cash equivalent. “Obviously this cash went up big. That was not my intent. My intent was it would be a storehold of value … and I took some off. Why? Because I am a trader at heart in the sense that I wanted to take my capital out,” he opined. “Once the capital came out, then I’m just gonna let it run, so I feel pretty good today.”
Do you agree with Jim Cramer about Tesla and bitcoin? Let us know in the comments section below.
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Author: Kevin Helms