Key Points
- Allianz Insurance acquires approximately 25% of MicroStrategy’s convertible note offerings, due in 2031.
- MicroStrategy’s stock has seen a significant increase, despite a recent drop, due to the company’s strategy of buying more Bitcoin.
Allianz Insurance, a leading German insurance company, has bought nearly a quarter of MicroStrategy’s bonds from their earlier convertible note sales. The value of the notes held by Allianz is roughly $750 million.
Allianz’s Purchase Details
The insurance giant purchased 24.75% of MicroStrategy’s 2031 convertible note offerings. These offerings were sold for $3 billion during a private three-day offering for institutional buyers.
As per Bloomberg’s data, Allianz is the primary buyer of MicroStrategy’s convertible note offerings, surpassing other major institutions such as Calamos Investments, Context Capital Management, State Street, Fidelity Investments, and BlackRock.
MicroStrategy’s Stock Performance
Despite a recent 16% drop in MicroStrategy’s stocks to a price of $419, the stock has risen by 18.03% in the past five days, 83% in the past month and 473% year-to-date, according to data from TradingView. Following this rise, MicroStrategy’s stock was named the “most traded stock in America”.
Many traders view Allianz Insurance’s sizable purchase of MicroStrategy bonds as a positive indicator. This suggests that the insurance company supports MicroStrategy’s strategy to buy more Bitcoin and shows faith in the software company as a whole.
This is primarily due to MicroStrategy’s announcement that the proceeds from their recent convertible notes offering will be used to purchase more Bitcoin.
MicroStrategy is the largest corporate Bitcoin holder. Its most recent purchase of 51,780 BTC increased the company’s Bitcoin holdings to 331,200 BTC or worth more than $32.6 billion following Bitcoin’s recent surge past $99,000.