CNBC’s Jim Cramer said Thursday he recently paid off a mortgage using profits from his investment in bitcoin.
Cramer said he bought “a lot of bitcoin” when the world’s biggest cryptocurrency was priced at around $12,000. He said he has now sold about half of his position.
“I paid off a mortgage yesterday with it,” Cramer told “Squawk on the Street.”
The price of bitcoin hit a record high above $64,000 per coin Wednesday. On Thursday, bitcoin traded around $63,000. Its price has risen more than 115% year to date.
“From the chart, I may be the only natural seller, but it was so great to pay off a mortgage. It was like, kind of, phony money paying for real money,” Cramer said.
“I now own a house — lock, stock and barrel — because I bought this currency,” he added.
In February, Cramer discussed on CNBC his motivation for owning bitcoin, describing the cryptocurrency as “an alternative to a cash position, where you make absolutely nothing.”
The world’s largest cryptocurrency by market value has advanced roughly 30% since Cramer’s comments on Feb. 9.
“As a way to have a pastiche of things that you should use your cash with, I’m all for it. I think it’s almost irresponsible not to include” bitcoin in a portfolio, the “Mad Money” host said in February.
On Thursday, Cramer seemed to suggest he followed investment advice he often espouses to viewers: Trimming positions to take profits after seeing considerable gains. “I’ve sold half all the way up,” he said Thursday of his bitcoin holdings.
Cramer has been known to say investors haven’t made money in a stock until some portion has been sold — until then, the gains are just on paper.
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Source: Investing - cnbc.com
