As cryptocurrencies plunge, distressed asset investment funds explore swapping strategies for preferred stock positions

As cryptocurrencies continue to plummet, making it increasingly difficult for this company that holds large amounts of Bitcoin, these funds are calling the proposal a win-win arrangement. According to sources, these investors have discussed with Moelis Co. swapping their positions at a discount for other preferred shares, or possibly for common shares. Strategy's common stock has plunged about 75% over the past year. Any potential deal could be completed under the so-called Section 3(a)(9) provision, which allows companies to exchange securities without formal registration with the U.S. Securities and Exchange Commission (SEC). Michael Saylor's Strategy was once one of Wall Street's hottest stocks, but as Bitcoin lost upward momentum, the stock declined sharply and its strategy of continually accumulating more Bitcoin has also come under question. (Bloomberg)