On Wednesday (February 24), former hedge fund manager Jim Cramer gave some great advice to beleaguered video game retailer GameStop Corp (NYSE: GME).
Cramer is the host of CNBC show “Mad Money w/ Jim Cramer“. He is also a co-anchor of CNBC’s “Squawk on the Street“, as well as a co-founder of financial news website TheStreet.
As Bloomberg reported on Tuesday (February 23), on this day, Jim Bell was ousted from his position of CFO of GameStop due to a dispute over the future direction of the company. Apparently, Bell was fired “to make way for an executive more in line with the vision of activist investor and board member Ryan Cohen.”
Bloomber’s report went on to say:
“Cohen has been pushing to transform GameStop from a brick-and-mortar retailer into an e-commerce company, and he’s been consolidating power at the chain. The former head of pet-supply site Chewy.com won three seats on GameStop’s board earlier this year.“
By close of the U.S. market on Wednesday (February 24), traders and investors on Reddit had sent the shares up 103.94% to $97.71.
A little less than two hours after the market closed yesterday, the Mad Money host suggested that one good way for GameStop to transform its business and hugely boost its stock price would be to follow MicroStrategy’s playbook and put Bitcoin on its balance sheet and that it could easily raise $1 billion for this purpose by issuing $1 billion in new shares. As you can say, one crypto influencer who agreed that this was a sound idea was Anthony Pompliano (aka “Pomp”), Co-Founder and Partner at Morgan Creek Digital Assets.
As you can see, in the case of Nasdaq-listed business intelligence company MicroStrategy Inc. (NASDAQ: MSTR), on 10 August 2020, the day before the firm announced for the first time that it intended to buy and hold Bitcoin for use as a primary treasury reserve asset, MSTR closed at $123.62. Since then, 90,531 bitcoins later (for an aggregate purchase price of approximately $2.171 billion), MSRT has gone up 561.45%, closing at $817.69 yesterday.
Earlier today, Cramer provided some further details on what GameStop should do and suggested that Cohen should tell the GameStop board to raise $2 billion for buying Bitcoin by issuing 10 million new shares: