Allianz acquires 25% of the bonds of MicroStrategy issued to buy Bitcoin

Allianz seems to have decided to participate in MicroStrategy’s Bitcoin (BTC) accumulation strategy. In fact, the largest German insurance company has purchased 25% of the 2031 convertible bond loan of the Business Intelligence company. 

Allianz acquires 25% of the bonds issued by MicroStrategy to buy Bitcoin

A major twist is the revelation that Allianz, the largest German insurance company, has purchased 25% of the 2031 convertible bonds of MicroStrategy. 

“The largest German insurance company, Allianz, has purchased 25% of MicroStrategy’s 2031 convertible bond loan.”

In practice, last June 2024, MicroStrategy had announced its private offering of senior convertible bonds maturing in 2031 to raise the amount of 500 million dollars and purchase new Bitcoin.

Specifically, this sale of new bonds was primarily allocated to qualified institutional buyers pursuant to Rule 144A, without registration under the Securities Act or other jurisdictional securities laws. 

Sifting through the various buyers of the bonds, it emerged that the largest insurance company in the world and the largest financial services company in Europe, Allianz SE, is present for 25%. 

This is a significant stake by Allianz, given that, for example, even the largest asset manager BlackRock is on the list but with its smaller purchase of 0.98%. 

Allianz and the purchase of Microstrategy bonds: institutions support Bitcoin (BTC)

On X, various comments are starting to circulate regarding this purchase by Allianz, and many seem to agree in thinking that Allianz and institutional investors are increasingly entering the “Bitcoin game.” 

In fact, it is well known that the famous Business Intelligence company founded by the bitcoiner Michael Saylor implements its strategies with the intent of raising money to purchase Bitcoin (BTC). 

At the time of writing, the crypto-wallet of MicroStrategy holds 331,200 BTC, the equivalent of over 32 billion dollars. The latest purchases of BTC were made precisely during this period of crypto rally.

Specifically, MicroStrategy executed its purchase of 27,200 BTC on November 11 and, the most recent, of 51,780 BTC on November 18, 2024. 

The entry into the top 100 USA companies by market cap before the bear market 

In these days, there has been talk of the new entry of MicroStrategy in the ranking of the top 100 USA companies by market cap.

At that moment, the stock MSTR increased by 11.89% in the trading session on Nasdaq, so that its market capitalization rose to 96.7 billion dollars. At that moment, MicroStrategy had gained 29 positions and was at position 97 in the ranking. 

As of today, however, the situation is more scaled down. The price of MSTR has fallen below $400, the market cap is 89 billion dollars, and MicroStrategy has lost 39 positions compared to yesterday, finding itself at position number 198 in the ranking of US companies.

According to another analysis, the dump of MSTR could be due to the fact that the markets did not like the company’s latest strategy, which is to issue debt for three billion dollars to purchase more BTC while it is at its ATH.