Allianz, Germany’s largest insurer, has purchased 24.75% of MicroStrategy’s $600 mn convertible note offering, according to Cointelegraph. The deal was finalized in March 2024, and the investment was made through four sub-organizations, as per Bloomberg Terminal data.
This move reflects the growing institutional interest in Bitcoin. Allianz, which ranks as Europe’s second-largest insurance provider, invested in the $600 mn note offering and not the more recent $2.6 bn note sale that closed on November 21, 2024. Heidi Polke, Allianz’s head of media relations, clarified this distinction.
Some funds distributed by AllianzGI and managed by Voya Investment Management in the US have in the past participated in MicroStrategy’s convertible bond issues.
Heidi Polke, Allianz’s head of media relations
Polke stated, “However, the total volume of convertible bonds held is well below the sums being bandied about on the market. It is in the three-digit million range.”
She also confirmed that Allianz’s total bond engagement with MicroStrategy is significantly below the bn-dollar range, reinforcing that Allianz is not a strategic investor at that level.
The acquisition of MicroStrategy’s notes aligns with broader trends of institutional investors supporting Bitcoin’s growth. MicroStrategy, led by CEO Michael Saylor, has been using these funds to buy more Bitcoin and support general corporate purposes. This activity is seen as a potential factor driving Bitcoin’s price upward.
Bitcoin’s price recently crossed the $100,000 mark, achieving a record high and printing its largest-ever monthly gain of over 40%, with analysts projecting a rally above $100,000.
MicroStrategy’s original plan was to offer $1.75 bn in notes, but demand led the company to increase the offering to $2.6 bn.
The final note sale closed on November 21, raising $3 bn in total. This increase occurred as initial purchasers opted to buy the maximum additional notes available, according to CEO Michael Saylor.
Market analysts like Ryan Lee, chief analyst at Bitget Research, believe that Bitcoin’s momentum could push it past the $100,000 milestone. Lee stated, “If history repeats itself and Bitcoin prices grow as projected, a 14.7% increase from the current price level will push the coin well above the $100,000 target for the month.”
However, some market participants have raised concerns about the growing leverage in crypto markets. On December, Kris Marszalek, co-founder and CEO of Crypto com, noted that a market deleveraging might be necessary before Bitcoin could surpass $100,000. This viewpoint highlights the ongoing debate regarding the impact of leverage on Bitcoin’s market stability and future price movements.
