Jim Cramer Rules Michael Saylor GUILTY of Turning Japan’s Economy Into a Bitcoin Bonfire

Right message, wrong messenger…

Ladies and gentlemen, the man most memed on Twitter for wrecking more stock growth stories than Jerome Powell just showed everyone not only is he one of the worst stock predictors in history… he also lacks any self awareness whatsoever.

Because Jim Cramer just blamed Michael Saylor and Microstrategy for the market crash that’s taking place over in Japan right now. Yes… Japan. And yes… Cramer. The same man who once told America to buy Bear Stearns six days before it imploded. The irony is so thick you could spread it on toast.

But here’s the frustrating part… the universe’s biggest financial cartoon character isn’t completely wrong this time. Japan raised interest rates for the first time in nearly 20 years, a move so rare it might as well have arrived by carrier pigeon. 

(Source: Bitcoins)

Well when that happened, the yen strengthened immediately. And when the yen strengthens, hedge funds running the famous yen carry trade (borrowing cheap yen and leveraging it into everything from U.S. tech stocks to crypto) suddenly find themselves staring into the abyss.

This is one of the largest shadow pipelines in global finance. When it breaks, hedge funds don’t calmly “de-risk.” They smash the sell button like it insulted their mother. And as we all know, the first thing they dump is anything volatile and liquid… which means Bitcoin gets sacrificed instantly.

Now here’s where Cramer aims his sweaty finger at Saylor. He said it himself: “This kneejerk, somewhat vicious decline smacks of anticipation of hedge funds blowing up over the Japan carry-trade… and Strategy/Bitcoin given that at this level they are almost the same thing.” Translation: Japan lit the match, but Saylor stacked the dynamite.

Once Bitcoin dropped nearly 30% from its highs, that was Strategy’s cue to do an Irish Goodbye. The stock has fallen more than 60% from its highs and 34% in November alone.

But the real tragedy was happening in the leveraged MSTR ETFs (MSTX, MSTU, and the ill-fated newborn MSTP) the products marketed to retail as “2x exposure,” but in practice delivered something closer to “2x therapy bills.”  MSTX is down about 82% this year. MSTU? 83%. And MSTP, which just launched in June, has already rocketed itself into the Top 10 Worst ETFs in America, right next to a triple-leveraged bet against Peruvian copper mines. Combined, Saylor’s entire ETF ecosystem has evaporated over $1.5 billion since October.

Meaning, Strategy is now officially flirting with the danger zone. Its precious mNAV ratio (the little scoreboard that tells you whether the company is still worth more than the Bitcoin sitting on its balance sheet) has slipped to 1.15, uncomfortably close to the 1.0 “we have to sell Bitcoin to pay our bills” line. CEO Phong Le even admitted that dropping below 1.0 is a “break-glass emergency,”

To calm markets, Strategy announced a $1.4 billion reserve, funded by freshly printed equity… a 21-month buffer meant to signal stability. Instead it signaled panic. JPMorgan analysts now say the company could be removed from the Nasdaq 100 and MSCI USA, potentially triggering billions in passive outflows. This was once pitched as a future S&P 500 name. Now it’s fighting for its spot in the league of “companies you’ve never heard of until they go bankrupt.”

So yes, Cramer looks ridiculous blaming Saylor for Japan’s monetary earthquake. But the chain reaction is real. And the man who once used to call everyone a loser if they didn’t sell their mom to buy more Bitcoin could be dumping billions worth very soon.

At the time of publishing this article, Stocks.News holds positions in Bitcoin as mentioned in the article.