“Paying fake money for real money” – Cramer sells Bitcoin and pays off a mortgage
CNBC’s Jim Cramer said Thursday he recently paid off a mortgage with profits from his investment in Bitcoin.
Cramer said he bought “a lot of Bitcoin” when the world’s largest cryptocurrency was priced at around $ 12,000. He said he has now sold about half of his position.
“I used it to repay a mortgage yesterday,” Cramer told Squawk on the Street.
The price of Bitcoin hit a record high of over $ 64,000 per coin on Wednesday. Bitcoin was trading at around $ 63,000 on Thursday. The price has increased by more than 115% since the beginning of the year.
“The table shows that I might be the only natural seller, but it was great getting a mortgage off. It was like some kind of fake money paying for real money,” Cramer said.
“I now own a house – lock, warehouse and barrel – because I bought that currency,” he added.
In February, Cramer discussed his motivations for owning Bitcoin on CNBC, describing the cryptocurrency as an “alternative to a cash position where you earn absolutely nothing”.
The world’s largest cryptocurrency by market value is up around 30% since Cramer’s February 9 comments.
“To have a pastiche of things you should use your money on, I’m all for it. I think it’s almost irresponsible not to” add bitcoin to a portfolio, “the Mad Money host said in February.
On Thursday, Cramer appeared to be suggesting that he should follow the investment advice he often suggests to viewers: trim positions to take profits after seeing sizeable gains. “I sold half of it,” he said on Thursday of his Bitcoin holdings.
Cramer is known to say that investors didn’t make money on a stock until a part was sold – until then, profits are only on paper.