- Allianz invested $750 million in MicroStrategy’s bonds, making it the top institutional holder.
- This gives Allianz indirect Bitcoin exposure while complying with regulations.
Allianz SE, the second-largest insurance company in Europe, has purchased close to 25% of MicroStrategy’s 2031 convertible notes for $750 million, indirectly supporting its Bitcoin-centered strategy.
Allianz SE, the second largest insurance company in Europe, has made a bold move by buying almost 25% of MicroStrategy’s convertible notes due in 2031. These notes, worth about $750 million, were part of a $3 billion private sale offered to big investors. With this purchase, Allianz holds more MicroStrategy’s bonds than major players like BlackRock, Fidelity, and State Street.
MicroStrategy, led by Bitcoin supporter Michael Saylor, has gained fame for its buying strategy. The company uses money raised from selling bonds, like these convertible notes, to buy Bitcoin. Recently, it added 51,780 BTC to its stash, bringing its total holdings to a massive 331,200 BTC, worth over $32.6 billion after Bitcoin’s price crossed $99,000.
Many view Allianz’s investment as significant support for MicroStrategy’s unique approach to combining Bitcoin with traditional finance. Users call this move “Giga Bullish” on social media because it reflects growing confidence in Bitcoin from a traditional financial giant.
Since insurance companies cannot buy Bitcoin directly, Allianz found a smart workaround by purchasing bonds tied to a Bitcoin-focused company. One social media user noted, “This is the only way an insurance company can get BTC exposure.”
However, the market’s reaction has been mixed. MicroStrategy’s stock dropped by 16% in the past day, landing at $419. Nonetheless, the stock has shined this year, jumping 18% in the past five days, 83% in the past month, and an incredible 473% since the start of the year. It has become one of the most traded stocks in the U.S.
By buying these bonds, Allianz shows its indirect support for Bitcoin and confidence in MicroStrategy’s approach. This move highlights how major traditional companies are slowly finding ways to enter the cryptocurrency world. It marks another step forward for Bitcoin as it integrates into the financial mainstream.
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Source: https://thenewscrypto.com/allianz-acquires-25-of-microstrategy-2031-convertible-note-offering/