Hefty Bitcoin Acquisition Looms as Allianz Buys 25% of MicroStrategy $2.6B Convertible Notes

Allianz acquires 25% of the 2031 convertible notes from MicroStrategy, potentially paving the way for a massive Bitcoin acquisition. 

Pseudonymous analyst Petruschki called the attention of the broader crypto community to the development today in a tweet. The post, accompanied by data from Bloomberg Terminal, shows that the insurance giant acquired 149,455 units of MicroStrategy’s $2.6 billion convertible note offerings. 

🇩🇪German insurance giant Allianz bought 24.75% of MicroStrategy’s 2031 bond 🤯 pic.twitter.com/OVtbZNhZ6o

— Petruschki (@petruschkii) November 22, 2024

Allianz Investment 

Allianz’s acquisition represents 24.75% of the business intelligence firm’s convertible note offerings, due March 2031. Per Petruschki, Allianz allocated its investment across four sub-organizations, with Allianz Global Investors Luxembourg receiving 14.34% and AllianzbGlobal Investors GMBH receiving a smaller portion of 0.04%. 

The investment shows Allianz’s confidence in MicroStrategy’s operation, which revolves around Bitcoin. 

Other notable companies that also participated in the fundraiser include Calamos Partners, Context Capital Management, BlackRock, Franklin Resources, and Deutsche Bank. These companies acquired 37,329, 30,500, 5,925, 5,475, and 680 units of MicroStrategy’s 2031 notes, respectively. 

Hefty Bitcoin Acquisition Looms 

The $2.6 billion note offering follows MicroStrategy’s announcement of a $3 billion fundraiser following the offering of its 2029 convertible senior notes. MicroStrategy disclosed in a press release that it offered the 2029 notes at a 55% premium with a $672 implied strike price. 

Like previous convertible note offerings, MicroStrategy also aims to use the proceeds from its 2031 notes offering to purchase Bitcoin. With Bitcoin trading at $97,707, MicroStrategy can acquire 26,610 BTC using the $2.6 billion. 

The development is part of MicroStrategy’s commitment to increase its Bitcoin holdings through fundraising. As reported earlier, the company disclosed plans to raise $42 billion over the next three years to purchase Bitcoin. 

Despite being the largest corporate BTC holder, the company has focused on increasing its Bitcoin holdings. According to data from BitcoinTreasuries, MicroStrategy holds a total of 331,200 BTC, valued at $32.36 billion. 

Meanwhile, the development follows Bitcoin’s remarkable spike to $99,000. The premier crypto asset reached an all-time high of $99,502 earlier today before retracing below $98,000. At press time, Bitcoin trades at $97,707, up 0.67% over the past 24 hours. 

Despite the massive surge of Bitcoin’s price, MicroStrategy’s stock (MSTR) plunged by 27.5% yesterday from a high of $536.87 to $389.18. The stock currently trades at $397.28, marking a five-day increase of 18.22%.