Distressed Funds Seek Strategy Share Swap as Stock Plunges 75% in Crypto Rout

1 articles · Updated · Bloomberg · Jul 6

Distressed-debt funds that bought Strategy Inc.’s battered preferred shares are discussing a swap with Moelis & Co., the company’s banker, as pressure on the Bitcoin-focused firm deepens.
The talks center on exchanging those holdings at a discount for other preferred securities or potentially for common stock, according to people familiar with the matter.
Strategy’s common shares have fallen about 75% over the past year, reflecting the broader crypto selloff that has left the company in an increasingly difficult position.
The proposed exchange is being pitched as a win-win, offering distressed investors a way to reposition while easing strain on a company tied closely to Bitcoin’s slump.