Allianz SE, Europe’s second-largest insurer and Germany’s largest, has acquired approximately 25% of MicroStrategy’s recent convertible note offerings. The investment represents a major endorsement of Bitcoin by a major financial institution.
Allianz wants exposure to Bitcoin
Allianz bought 24.75% of MicroStrategy’s $2.6 billion bond sale to institutional investors, which closed on November 21. The investment was made across four of Allianz’s subsidiary organizations, according to Bloomberg Terminal data shared by the analyst with the pseudonym Petrushki on November 22. mail On X: “German insurance giant Allianz bought 24.75% of MicroStrategy’s 2031 bonds.”
He further explained: “The positions were offered in July and October. The shares are owned by the following subsidiary organizations: Allianz Global Investors Luxembourg 14.34%, Allianz Global Investors of America LP 6.64%, and Nicholas Applegate Capital Management Inc. 3.74%, and Allianz Global Investors GmbH 0.04%.
MicroStrategy, known as the world’s largest bitcoin holder, initially announced a total principal amount of $1.75 billion worth of notes on November 18. However, due to strong institutional demand, the company increased the offer to $2.6 billion after just two days.
The completion of the securities offering on November 21 raised capital of $3 billion, indicating that the initial buyers exercised their option to purchase the maximum amount of additional securities available. Michael Saylor, Founder and CEO of MicroStrategy, confirmed the successful closing of the offering.
The allocation to convertible notes shows a diverse group of institutional investors. Allianz SE is the largest investor with 149,455 shares, representing 24.75% of the total offering. It is followed by Calamos Partners LLC with 37,329 shares (6.18%), and Context Capital Management LLC with 30,500 shares (5.05%).
Other notable investors include State Street Corp with 8,307 shares (1.38%) and FMR LLC with 7,199 shares (1.19%). BlackRock, Schroders PLC and Royal Bank of Canada also participated, each holding less than 1% of the shares.
This influx of institutional capital comes at a pivotal moment for Bitcoin, as the cryptocurrency approaches the historic milestone of $100,000. Allianz’s investment is viewed by many as a strong vote of confidence in Bitcoin’s long-term potential.
Patrick Dotson, Co-Founder and COO of Synnax, Comment About the development via From the initial offer, the interest that MSTR will pay is zero (…) In case you are wondering who is handing over money on a silver platter to MSTR (…) Do you see any retail sales in the list? Blame Wall Street, not Saylor.
At press time, Bitcoin was trading at $97,812.
Featured image created with DALL.E, a chart from TradingView.com