Current American TV personality and former hedge fund manager Jim Cramer recently made it known that he wants GameStop to make the daring attempt to buy Bitcoin in order to raise its own stock price. He further commented that by purchasing $1 billion in Bitcoin, the former could actually raise their stock price to $430.
Many On Wall Street Looking To Invest In Cryptocurrency
In addition to GameStop being advised to purchase stocks of Bitcoin, there have been numerous other firms that have had the same intentions as of late. These firms decided to replace just a small portion of their respective cash stocks and reserves with the cryptocurrency benchmark. A few examples of these firms include Tesla as well as Square, which had also recently announced that they had added another $170 million to their already pre-existing $50 million Bitcoin profile.
Furthermore, MicroStrategy looks to be ahead of the curve as they have already bought over $1 billion worth of Bitcoin stock in addition to the reserves BTC that they already had. Tesla has also invested over $1 billion into BTC at the time of this writing.
The main reason why many firms are interested in investing in Bitcoin is due to the ongoing pandemic and the fact that travel, as well as physical trading, is extremely difficult to do nowadays. The economy had come to a complete halt, and although the United States government is trying to rectify the situation by pouring even more, U.S dollar liquidity into the markets through the banks, as well as giving air directly to those who need it and even reducing the cost of loans by a significant amount, many feel that this is simply not enough.
It is easy to see why many would feel this way, as, despite the best efforts by the government, the U.S dollar index decreased by well over 12% as a result of oversupply.
So ultimately, investing in cryptocurrency seems to be logical; however, Jim Cramer himself has advertised caution too, due to the extremely volatile nature of the digital-based currency. Still, his advice to firms such as GameStop may be sound as it has seemingly less to do with supporting cryptocurrency itself and more to do with avoiding bankruptcy.