Key Takeaways
- Allianz acquired nearly 25% of MicroStrategy's $2.6B notes.
- MicroStrategy plans to use the funds to buy more Bitcoin.
- The note sale raised $3 billion after strong demand.
Germany’s largest insurer, Allianz, has made a notable investment in MicroStrategy’s $2.6 billion convertible note offering, acquiring 24.75% of the total issuance. The investment was spread across four Allianz sub-organizations, according to data from Bloomberg Terminal, as shared by analyst Petruschki on Nov. 22.
The allocation includes holdings by Allianz Global Investors Luxembourg (14.34%), Allianz Global Investors of America LP (6.64%), Nicholas Applegate Capital Management Inc. (3.74%), and Allianz Global Investors GmbH (0.04%).
MicroStrategy, the world’s largest corporate Bitcoin holder, plans to use the funds to purchase additional Bitcoin and for corporate purposes. This aligns with the company’s ongoing strategy under founder and CEO Michael Saylor to leverage Bitcoin as a reserve asset.
The note offering, initially planned at $1.75 billion, was increased to $2.6 billion due to strong institutional demand. The sale closed on Nov. 21, raising a total of $3 billion, with initial buyers purchasing the maximum amount of additional notes.
Bitcoin’s price has been climbing, recently surpassing $99,000 after a record-breaking monthly gain of over 40%. While this trend fuels optimism about reaching $100,000 soon, concerns remain about potential market leverage, as noted by industry experts.
Allianz’s involvement underscores the growing role of institutional investors in supporting Bitcoin’s adoption and market dynamics.
