Strategy Unlocks $15 Billion for Bitcoin via AI-Designed Preferred Stocks

Michael Saylor, executive chairman of Strategy, revealed how his company used ChatGPT to design a new class of preferred stocks that allowed it to raise $15 billion for its Bitcoin strategy.

The company turned to AI after its existing financing channels, including common-stock sales and convertible bonds, became hard to scale. Saylor explained that they needed to invent a new type of security to borrow money for Bitcoin purchases.

Using ChatGPT, Strategy designed STRK, a convertible preferred stock, which was later modified to be more like short-duration credit. The company then developed STRC, a variable-rate preferred stock, whose dividend rate could be adjusted as market conditions changed.

Saylor stated that they used AI to work through how the structure could be built within existing securities rules, receiving an affirmation from ChatGPT that it was possible.