Allianz, the German insurance giant, has invested $2.6 billion in convertible bonds from MicroStrategy, strengthening its presence in the Bitcoin space. This decision marks a turning point for institutional investors, sending a strong signal about the growing adoption of Bitcoin as a viable investment asset, particularly in Europe.
Allianz enters the Bitcoin universe via MicroStrategy convertible shares
The largest insurance company in Germany and 2nd largest in Europe, Allianz, has made a significant investment by betting on Bitcoin. The group invested $2.6 billion to acquire nearly 24% of MicroStrategy's new convertible bonds.
As part of the Bitcoin rally, MicroStrategy initially planned an offering totaling $1.75 billion, first announced on November 18.
Just 2 days later, the world's largest Bitcoin holder finally decided to extend this offer to $2.6 billion.
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Ultimately, $3 billion was raised, marking this Thursday, November 21, the end of the sale of its convertible shares to institutional investors.
This news arrived shortly after the price of Bitcoin predicted its largest monthly candle ever recorded, very closely approaching the symbolic mark of $100,000.
🇩🇪German insurance giant Allianz bought 24.75% of MicroStrategy's 2031 bond 🤯 pic.twitter.com/OVtbZNhZ6o
— Petruschki (@petruschkii) November 22, 2024
In this offer, the Allianz group obtained 24.75% of the total volume, or 1/4 of the offer, thanks to an investment distributed between 4 of its subsidiaries:
- Allianz Global Investors Luxembourg: 14.34%
- Allianz Global Investors of America LP: 6.64%
- Nicholas Applegate Capital Management Inc.: 3.74%
- Allianz Global Investors GmbH: 0.04
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Allianz commits to Bitcoin: a strong signal for institutional investors
This investment sends a clear signal: in a sector as regulated and prudent as that of insurance and banking, this positioning is a guarantee of confidence and could encourage other players to reconsider their positions on Bitcoin.
Thanks to the creation of new instruments such as Bitcoin ETFs or even MicroStrategy's convertible bonds, there is now no longer any obstacle for traditional finance players in accessing Bitcoin.
Indeed, benefiting from reliable instruments, regulated and approved by regulators, allows institutional players to take an interest in and gain exposure to Bitcoin without complexes.
Like MicroStrategy in the United States, which was one of the pioneers of the institutional adoption of Bitcoin, the example of Allianz could create a snowball effect.
Indeed, such a trend could lead to wider adoption of Bitcoin by German and European businesses.
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As a European leader, Allianz benefits from strong reputational capital. His decision could strengthen the credibility of Bitcoin as a viable alternative asset in an institutional investment strategy.
With significant financial and economic weight on the European market, setting an example in this way could encourage European authorities to reconsider their positions and adopt a more favorable approach towards cryptocurrencies.
In a rapidly changing and constantly changing environment, traditional institutions seek to maintain their competitiveness.
In the favorable economic context that Bitcoin is currently experiencing, a new dynamic seems to be emerging. BTC is gaining credibility as a reserve asset in the medium and long term.
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