Jim Cramer on Strategy Inc: "That's an Insane Amount of Risk"

Strategy Inc (NASDAQ:MSTR) is one of the stocks Jim Cramer recently offered insights on. Cramer explained why he does not want people to own the stock, as he said:

“There’s Strategy, formerly MicroStrategy, an agglomeration of crypto that public documents indicate owns about 3% of all Bitcoin, a huge holding and finances that investment with more than $8 billion in debt. That’s an insane amount of risk. JPMorgan this morning talked about how Strategy may get booted from some indices because it’s basically just a scheme, though, of Bitcoin, not a real operating company. The piece didn’t suggest it would happen soon, maybe by the middle of January.

But man, there’s a lot of money in index funds, and the indices include Strategy. The pressure on Strategy from these automatic sellers could be disastrous. You kick something out of the index like that, then the index money automatically departs. One more reason why you cannot afford to own that stock, and I’ve been saying that and saying that.”

Strategy Inc (NASDAQ:MSTR) focuses on Bitcoin investments, and provides investors exposure through several financial products. Moreover, the company provides AI-powered analytics tools that help businesses make smarter decisions and streamline data management.

While we acknowledge the potential of MSTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.