CNBC-TV host Jim Cramer thinks videogame retailer GameStop (GME) – the firm at the heart of the recent WallStreetBets-led retail trading frenzy – should buy bitcoin.
With GameStop shares up by 100% and closing at $91.71 in the final hours of trading on Wednesday, Cramer tweeted: “GME–issue one billion dollars in stock, Buy one billion in bitcoin and watch your stock go to $430…”
MicroStrategy, Square, Tesla and others have recently been buying bitcoin as a hedge against inflation and a devaluing dollar. Cramer previously endorsed MicroStrategy’s bitcoin treasury reserve and said he wouldn’t bet against CEO Michael Saylor, whom he called a “gunner.”
Earlier this month, GameStop’s stock price rose sharply as groups of retail traders led by Reddit group r/WallStreetBets bought its stock and others that were being shorted by hedge funds. When the Reddit group started buying, the stocks went up and some short sellers lost billions of dollars. On Tuesday, it emerged that GameStop CFO Jim Bell – referenced in Cramer’s tweet – had resigned for reasons not disclosed by the company.
In another tweet over the latest GME price rise, Cramer added, “This is so wild west […] The SEC must be having a fit!!!”