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BullDigest's May 12 Pre-Market Summary of MicroStrategy Incorporated

  • 12.05.2025 15:22
  • bulldigest.com
  • Keywords: Pre-Market, Summary, MicroStrategy Incorporated

Check out BullDigest's May 12 Pre-Market Summary of MicroStrategy Incorporated. We provide a summary of the key news before the market opens.

Pre-Market SummaryCOINSTRKsentiment_satisfied

Estimated market influence

Michael Saylor

Positivesentiment_satisfied
Analyst rating: N/A

He is projecting Bitcoin's future value and promoting its adoption by corporations.

Coinbase

Coinbase

Neutralsentiment_neutral
Analyst rating: Buy

They considered a significant Bitcoin allocation but decided against it, maintaining a balanced approach.

Hut 8

Positivesentiment_satisfied
Analyst rating: N/A

Provides infrastructure and operations for American Bitcoin, retaining majority ownership post-merger.

Gryphon Digital Mining

Neutralsentiment_neutral
Analyst rating: N/A

Participating in the merger with American Bitcoin but not taking a significant stake.

Strategy

Strategy

Positivesentiment_satisfied
Analyst rating: —

Making substantial Bitcoin purchases and showing strong commitment to Bitcoin accumulation.

Metaplanet

Positivesentiment_satisfied
Analyst rating: N/A

Acquiring significant amounts of Bitcoin, outperforming traditional investments with high yields.

South Street Seaport

Negativesentiment_dissatisfied
Analyst rating: N/A

Unprofitable company with the CEO's tax bill being paid personally, affecting reputation and employee morale.

El Salvador

Neutralsentiment_neutral
Analyst rating: N/A

Their Bitcoin holdings have been surpassed by Metaplanet but remain significant in the region.

Context

Business Insights and Market Implications Summary

Michael Saylor's Bitcoin Projections

  • Projection: Bitcoin could reach $13 million by 2045.
  • Corporate Strategy: Advocates for corporate adoption of Bitcoin over traditional assets like cash, gold, and bonds due to superior returns.
  • Products: Introducing financial products such as "Strife" (10% interest), "Strike" (8% income), and BitBonds.
  • Valuation: Attributes Bitcoin's $103,000 valuation to profit-taking from failed firms like FTX.

Coinbase's Bitcoin Allocation Strategy

  • Decision: Did not allocate up to 80% of its balance sheet to Bitcoin due to financial stability concerns as a startup.
  • Holdings: Holds nearly 9,480 BTC ($988 million) out of $1.3 billion crypto holdings as of May 2025.
  • Allocation: Allocated $153 million in cryptocurrencies in Q1 2025, primarily in Bitcoin.

Trump Family's American Bitcoin Going Public

  • Merger: American Bitcoin (backed by the Trump family) will merge with Gryphon Digital Mining (GRYP), creating "ABTC" to trade on Nasdaq.
  • Ownership: Hut 8 retains majority ownership post-merger, with existing shareholders owning ~98% of the new company.

Strategy's Bitcoin Purchase

  • Acquisition: Acquired 13,390 BTC for $1.34 billion at an average price of $99,856.
  • Total Holdings: Total holdings now stand at 568,840 BTC ($59 billion), with an average purchase price of $69,287.
  • Funding: Purchase funded by selling common stock and issuing Series STRK preferred shares.

Crypto Market Update

  • Bitcoin Price: Briefly surpassed $105,000 following U.S.-China tariff cuts.
  • Altcoins: Ether up 40% in May; Aptos (APT), WhiteBIT Coin (WBT), Starknet (STRK), and Sei (SEI) seeing significant token unlocks.
  • Futures Open Interest: Perpetual futures open interest for BTC nears $20 billion.

GARP Stock Strategy

  • Growth at a Reasonable Price (GARP): UBS identifies 29 stocks with 30x estimated 2025 earnings and 19% expected return.
  • Economic Slowdown: Anticipated U.S. GDP growth of 0.7% YoY by Q4.
  • Drug Performance: Eli Lilly's Zepbound outperforms Novo Nordisk's Wegovy in weight loss trials.

Metaplanet's Bitcoin Acquisition

  • Purchase: Acquired 1,241 BTC for $126 million (~$102,119 per BTC), bringing total holdings to 6,796 BTC ($706 million).
  • Yield: Q2 2025 yield of 38%, following Q1's 95.6% and Q4 2024's 309.8%.
  • Goal: Aims to reach 10,000 BTC by end of 2025.

South Street Seaport CEO Tax Bill

  • Uniqueness: CEO's personal tax bill paid, unlike other employees, highlighting corporate tax strategies.

Asia's Biggest Bitcoin Holder

  • Acquisition: Metaplanet overtakes El Salvador with 6,796 BTC holdings.
  • Profit: Unrealized profit of ~16.2% at $102,119 per BTC.
  • Projection: Stock projected to double at $120,000 Bitcoin price.

This summary captures critical business insights and market implications across key developments in the cryptocurrency and corporate sectors.