ChatGPT Helps Strategy Raise $15 Billion in Bitcoin-Funded IPO

Strategy Inc.'s co-founder Michael Saylor credited OpenAI's ChatGPT for helping design a novel preferred stock structure that enabled the company to raise around $15 billion for Bitcoin purchases.

Saylor said he turned to ChatGPT after exhausting traditional fundraising options, including equity offerings and convertible bonds. The company needed to create an entirely new type of security that sat between common equity and debt.

The result was a convertible preferred stock called (NASDAQ:STRK), which was backed by the company's Bitcoin strategy. Saylor said neither lawyers nor investment bankers had seen a similar structure before, often responding 'No one's ever done it before.'

ChatGPT helped refine the security's design, including a variable monthly dividend mechanism intended to keep the instrument trading near its $100 par value. The AI encouraged the team to pursue unconventional ideas that traditional advisers viewed as unfeasible.