Allianz Buys MicroStrategy Convertible Notes to Bet Big on Bitcoin

Allianz SE, Europe's second-biggest and Germany's largest insurer, bought approximately 25% of MicroStrategy's convertible note issuance. A significant financial institution backed Bitcoin with the investment.

Allianz Wants Bitcoin Exposure

The November 21 MicroStrategy $2.6 billion institutional note offering finished with Allianz buying 24.75%. According to Bloomberg Terminal data provided by pseudonymous analyst Petruschki on X on November 22, “German insurance giant Allianz bought 24.75% of MicroStrategy’s 2031 bond.” Four Allianz sub-organizations were involved.

The posts were submitted in July and October, he said. Suborganizations 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% own the shares.

On November 18, MicroStrategy, the biggest Bitcoin shareholder, announced a $1.75 billion aggregate principal amount of notes. In response to high institutional demand, the business raised the offering to $2.6 billion two days later.

The November 21 note sale generated $3 billion, suggesting that early buyers bought the maximum number of notes. The IPO closed successfully, according to MicroStrategy creator and Executive Chairman Michael Saylor.

The convertible note allocation shows varied institutional investors. Allianz SE is the biggest investor with 149,455 shares, 24.75% of the offering. Calamos Partners LLC had 37,329 shares (6.18%) and Context Capital Management LLC 30,500 (5.05%).

State Street Corp (1.38%) and FMR LLC (1.19%) are other major investors. The Royal Bank of Canada, BlackRock, and Schroders PLC each held less than 1% of the shares.

Bitcoin is approaching $100,000, therefore this institutional funding is crucial. Many saw Allianz's purchase as a statement of confidence in Bitcoin's future.

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