Strategy uses AI securities to raise $15B for Bitcoin

Michael Saylor, the executive chairman of Strategy Inc., has revealed that artificial intelligence played a pivotal role in designing novel financial instruments that raised approximately $15 billion for the company, capital that was subsequently used to purchase Bitcoin. Saylor detailed the process in a recent interview on "The Diary of a CEO" podcast, explaining that his team turned to OpenAI's ChatGPT after traditional financing methods, primarily convertible bonds, reached their practical limits.

The AI chatbot helped conceptualize a new class of hybrid securities that blend characteristics of debt and equity. The primary result was STRK, a convertible preferred stock, and a related instrument called STRC, which features a variable monthly dividend engineered to stabilize its market price. Saylor described the creation of the variable-dividend structure as unprecedented. One of these instruments alone raised about $2.5 billion, which Saylor called the largest initial public offering of its kind at the time, with subsequent offerings pushing the total capital raised to roughly $15 billion.

The proceeds were aggressively deployed into Bitcoin, bringing Strategy's total...