Michael Saylor Credits ChatGPT For $15 Billion Bitcoin Funding

MicroStrategy executive chairman Michael Saylor says he used AI to secure $15 billion in capital for the company's Bitcoin buying spree. Facing difficulty scaling traditional common stock and convertible bond sales, Saylor turned to ChatGPT to design custom preferred stock instruments. He used the tool to explore how these securities could function within existing regulatory frameworks despite skepticism from traditional financial advisers.

The AI helped design a variable dividend preferred stock that blends features of debt and equity. By using this structure, the company successfully raised about $10.5 billion through its STRC instrument and another $4 billion through related products. Saylor notes that traditional consultants initially doubted the viability of the structure, but the AI confirmed it could work.

This approach highlights a creative way firms are using generative AI for corporate finance. Instead of relying on the technology to trade assets, Saylor used it to draft new credit instruments that bypass the limits of traditional capital markets. This strategy allows MicroStrategy to continue growing its massive hoard of over 840,000 Bitcoin.