CNBC’s Jim Cramer: ‘I’m still looking into Coinbase and all these cryptocurrencies’

Former hedge fund manager Jim Cramer, who is the host of CNBC’s “Mad Money w/ Jim Cramer,” is “looking into” Coinbase Global Inc. (NASDAQ: COIN).

On Monday, Cramer, who is also a co-anchor of CNBC’s “Squawk on the Street” as well as a co-founder of the financial news website TheStreet, sent out the following tweet:

On April 14, 2021, when Coinbase became a public company on the Nasdaq exchange through a direct stock listing; Shares of Coinbase (COIN) closed at $328.28 per share, valuing the company at $85.8 billion on a fully diluted basis.

Source: Google Finance

That day, Cramer showed how bullish he was on Coinbase stock by sending out the following tweet:

However, since November 2021, when the latest “crypto winter” began, it has been bearish on both crypto assets in general and Coinbase stock.

On November 10, 2021, one day after Coinbase released its Q3 2021 financial results, it tweeted:

And this is how Cramer criticized Coinbase’s management on May 12, 2022:

On July 26, 2022, shares of Coinbase fell 21% after Bloomberg reported that the US Securities and Exchange Commission (SEC) is investigating Coinbase to determine if the exchange of cryptocurrencies offers unregistered securities. This prompted Cramer to send the following three Coinbase-related tweets that day:

On Thursday (Aug 4), Coinbase’s Brett Tejpaul (Head of Institutional Coinbase) and Greg Tusar (Head of Institutional Product) published a blog post stating that Coinbase and BlackRock were going to “create new hotspots.” for Institutional Crypto Adoption Connecting Coinbase Prime and Aladdin.”

The blog post went on to say that “Coinbase is partnering with BlackRock, the world’s largest asset manager, to provide institutional clients of Aladdin®, BlackRock’s end-to-end investment management platform, with direct access to crypto, starting with bitcoin, through connectivity with Coinbase Prime.” Apparently, Coinbase Prime “will provide crypto trading, custody, prime brokerage, and reporting capabilities to Aladdin’s institutional customer base who are also Coinbase customers.”

Joseph Chalom, Global Head of Strategic Ecosystem Partnerships at BlackRock, had this to say:

Our institutional clients are increasingly interested in gaining exposure to digital asset markets and are focused on how to efficiently manage the operational life cycle of these assets. This connectivity with Aladdin will enable clients to manage their bitcoin exposures directly within their existing portfolio management and trading workflows for a complete view of portfolio risk across asset classes.

This announcement helped Coinbase shares, which had closed at $67.23 on Wednesday (Aug 3), close at $88.94 on Thursday.

Coinbase is expected to announce its Q2 2022 financial results next Tuesday (Aug 9).

As for Cramer’s current bearish attitude towards cryptocurrencies, on July 5, 2022, he said during a conversation with Joe Kernen, co-host of CNBC’s “Squawk Box”:

Right now, everything seems to be going wrong, and I’m not going to deny that all asset classes are taking a hit. The one I’m most interested in is cryptography. There are a lot of people in crypto. Crypto really seems to be imploding, but of course [went] from three trillion to one trillion. Why should it stop at a billion?

There is no real value there. I mean, you look at these companies… There are these companies that you’ve never heard of and they blew up over the weekend, and you’re like, ‘Oh my God! there’s six hundred million dollars going down the drain’, and we had Gary Gensler, the [SEC] President, a few weeks ago, you just said ‘look, anybody who has an investment rate come here…the rate they earn…you can forget about it,’ and that’s what’s happening. How many places can Sam Bankman-Fried save?

Just a month earlier, however, Cramer told CNBC’s “Make It”:

If you are a young person and you are thinking about cryptocurrencies, I think it is smart.

I believe that cryptocurrencies should be part of a person’s diversified portfolio. I can’t tell you that you don’t have crypto. I own cryptocurrencies: I own Ethereum. Why did I buy Ethereum? Because I was at a charity auction to buy what’s known as NFTs, and they wouldn’t let me make dollars. I had to buy it on Ethereum.

So I looked into it and said, ‘well, you know, I have some qualities that I like (scarcity, value) not as attractive, if you will, as Bitcoin. So, I bought it. These are values ​​of hope. Now I don’t like hope. I think you should never invest in hope, but this is speculative, and one of the things I teach in my classrooms is that it’s okay to own something speculative.

You must admit that it is speculative. So, you don’t put it in the Procter & Gamble class, [it’s] It’s not Coca-Cola, it’s not Apple, but I suggest and accept speculation. Now, when I started Mad Money, I said, ‘I think you should have a spec and I think you should have a gold stock.’

And ever since crypto came along, I’ve said that instead of, say, 10% being gold, 5% should be gold and 5% should be crypto. What do I think is the value of cryptocurrencies? I have no idea. However, this is what I know you are thinking. You’re thinking ‘I’ve seen fortunes made in crypto and I want a chance to make a fortune.’

And unlike many of the so-called gray-haired people on TV, I agree with you. You have every right to try to make some money on crypto. I would rather you do it on Ethereum or Bitcoin which have the largest followings they seem to be the most legit. I would be careful not to borrow money as many people own them because they are speculative…

Bitcoin can’t live in your house. It is not a mortgage. It’s a sheet of paper, or in this case, it’s not even a sheet of paper. Therefore, I do not want any loans. Borrow for your home, borrow for your car, but don’t borrow for crypto, but I would never discourage you from buying crypto because of all the fortunes that have been made and how it could make fortunes for a whole new group of people. I wish it was you.

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