Jim Cramer, a prominent market commentator well-known for his presence on financial television, issued a public appeal on Tuesday addressed to Michael Saylor, the chairman of Strategy Inc. (NASDAQ:MSTR). Cramer emphasized the urgency for Saylor to take decisive action to halt the ongoing decline in Bitcoin (CRYPTO: BTC) prices.
Using the social media platform X, formerly Twitter, Cramer proposed that Saylor consider issuing a zero-coupon convertible bond as a financial mechanism designed to limit Bitcoin's downside risk at a specific valuation level. Cramer specified this "line in the sand" at $73,802 per Bitcoin, underscoring its critical importance. Through his post, he noted that the earnings of Strategy Inc. are contingent upon this threshold and highlighted the approaching quarterly earnings report scheduled for Thursday as a looming event that necessitates such measures.
Approximately an hour after his initial post, Cramer reiterated the importance of maintaining Bitcoin's price above a closely aligned level of $73,820. He urged Saylor once more to employ corporate financial strategies capable of halting Bitcoin's recent downward trend.
As of this writing, Strategy Inc. had not provided a comment responding to Cramer's suggestions or the current market situation upon request.
Cramer's vocal presence has been notably persistent in the context of the pronounced sell-off experienced across cryptocurrency markets recently. Bitcoin's value has retreated to levels not observed since November 2024, prompting Cramer to repeatedly mention Saylor and his company, which holds a significant Bitcoin treasury.
In an attempt to capitalize on the market conditions, Strategy Inc. recently acquired an additional 855 Bitcoins at an average purchase price of $87,974 per coin. This acquisition was funded entirely through the issuance and sale of the company's Class A common shares. However, Cramer has expressed questions regarding whether Saylor and Strategy Inc. possess sufficient remaining capital to continue supporting Bitcoin prices and shield against further declines.
The stock of Strategy Inc. is frequently described as a leveraged proxy for Bitcoin due to its complex strategy involving issuing various classes of stock and bonds to finance Bitcoin acquisitions as market prices fluctuate upwards. Presently, the company's total debt stands at approximately $8.24 billion. This financial structure inherently exposes the firm to increased risk tied to Bitcoin's volatility.
Strategy Inc.'s Bitcoin holdings comprise approximately 713,502 coins, which were acquired at an aggregated cost exceeding $54 billion, corresponding to an average price near $76,052 per Bitcoin. Recently, the company’s position momentarily posted a loss as Bitcoin prices dipped below this average cost. This development was highlighted in the social media commentary of economist Peter Schiff.
In response to the market turmoil, Michael Saylor reiterated his commitment to holding onto Bitcoin through his consistent "HODL" position. Saylor has previously asserted that Strategy Inc.'s business model is deliberately structured to endure Bitcoin drawdowns ranging from 80 to 90 percent while maintaining operational viability.
Investors anticipate the release of Strategy Inc.'s earnings report for the fourth quarter of 2025 following market close on Thursday, an event that may provide further insights into the company's financial resilience and strategic outlook.
Regarding recent price movements, Bitcoin was trading at approximately $76,612.10, reflecting a 2.42 percent decrease in the previous 24 hours according to Benzinga Pro data. Meanwhile, Strategy Inc.'s shares closed down by 4.56 percent at $133.26 on Tuesday and experienced an additional 1.47 percent drop in after-hours trading.
Analytical evaluations by Benzinga's Edge Stock Rankings indicate that MSTR shares are underperforming across short-, medium-, and long-term price trends and carry a weak Value ranking, suggesting diminished investor confidence amid current market conditions.
While these developments paint a challenging picture, Strategy Inc.'s forthcoming earnings report and management’s strategic responses remain critical factors in assessing the company’s future trajectory in this volatile environment.