TL;DR
- Allianz acquires 25% of the bonds issued by MicroStrategy to buy Bitcoin.
- MicroStrategy continues to accumulate Bitcoin, with recent purchases increasing its reserve to over 331,000 BTC.
- MicroStrategy’s strategy has generated market uncertainty, especially due to its use of debt to fund future Bitcoin purchases.
Allianz, the largest insurance company in Germany, has fully entered the crypto market by acquiring 25% of the convertible bonds issued by MicroStrategy.
These bonds, maturing in 2031, were part of an offering made by MicroStrategy in June 2024, aimed at raising $500 million to continue its Bitcoin acquisition strategy. Allianz’s participation, along with firms like BlackRock, reflects institutional investors’ interest in the strategy of Michael Saylor’s company.
🇩🇪German insurance giant Allianz bought 24.75% of MicroStrategy’s 2031 bond 🤯 pic.twitter.com/OVtbZNhZ6o
— Petruschki (@petruschkii) November 22, 2024
Allianz Makes a Strong Bet on MicroStrategy
MicroStrategy, known for its focus on Bitcoin accumulation, has used the funds raised from the bond offering to continue increasing its BTC reserve. As of today, the company holds over 331,000 Bitcoin, valued at more than $32 billion.
The most recent purchases, made in November 2024, amounted to 27,200 BTC on November 11 and 51,780 BTC on November 18. This constant accumulation has made MicroStrategy one of the largest Bitcoin holders globally, a strategy primarily driven by its CEO, Michael Saylor, who is a staunch supporter of the cryptocurrency.
MicroStrategy Enters the Top 100 Most Valuable Companies in the U.S.
However, the company’s strategy has generated some uncertainty in the market. Despite recent gains in MicroStrategy’s stock price, which briefly placed the company among the top 100 most valuable U.S. companies, the stock price has fallen again, raising concerns about the company’s approach.
One of the most debated points is its decision to issue $3 billion in debt to continue buying Bitcoin, which could be risky if the cryptocurrency market experiences a significant drop or correction
