Cramer says he sold some ether after record highs to feed an all-electric lobster
CNBC’s Jim Cramer said Wednesday he had reduced some of its ether holdings after the world’s second largest cryptocurrency by market value hit a series of record highs.
“I sold half of my Ethereum yesterday … and invested some money to own a Hummer,” Cramer said in “Squawk on the Street,” referring to General Motors’ upcoming all-electric vehicle available as a pickup truck in the fall and an SUV in early 2023. Both start at more than $ 100,000.
“Why not buy a car” with my airwaves, quipped the Mad Money host. When asked about the level of his crypto exposure, CNBC’s David Faber said Cramer said he “owned enough to get the job done”.
Cramer said Tuesday on CNBC that he owned “a lot” of ether, the digital currency that runs on the Ethereum blockchain. He said he originally bought Aether in March to participate in an auction for non-fungible tokens (NFTs) that Time Magazine is putting up for sale.
Ether was trading at around $ 1,900 per token through the end of March, and bounced back through April into May. On Tuesday, the cryptocurrency broke above $ 3,500 per coin. Ether, which ended at around $ 740 in 2020, was trading below $ 3,400 on Wednesday morning, bringing the year-to-date gain above 350%.
Cramer’s decision to outsource some of his Aether holdings comes after he said he was “not selling it” in a video on Monday for his financial news website, The Street.
The “Mad Money” host often insists viewers need to be disciplined when it comes to taking profits when they make big paper profits in stocks. Investors didn’t make any money until “the money left the stock market and got into your bank account,” he said on CNBC last year.
Cramer this week apparently followed his own advice on ether and bitcoin last month and sold some of his holdings in the world’s largest cryptocurrency to pay off a mortgage.
Cramer has also become more optimistic about crypto lately. He believes investors should hold Bitcoin as an alternative to a cash position.
While Bitcoin underperformed Ether in 2021, the digital currency is still up more than 90% since the start of the year, based on the trading price of around $ 57,000 on Wednesday. Bitcoin, the world’s largest cryptocurrency by market value, hit an all-time high of nearly $ 65,000 per token last month. The market cap of more than $ 1 trillion represents nearly half of the total crypto market.
Cramer has also spoken positively about Coinbase, one of the world’s largest cryptocurrency exchanges, which went public in a direct listing last month. Coinbase hit an all-time high of $ 429 per share on its first day of trading. However, it has since fallen from that level, trading just 11% above its reference price of $ 250 per share.
Despite the stock’s subsequent struggles, Coinbase’s public debut was seen as a key moment for cryptocurrency mainstreaming.