Distressed‑debt funds that own preferred shares of Strategy Inc. are in talks with investment bank Moelis & Co. about a possible securities swap. The parties are exploring the exchange of the existing preferred shares for alternative securities, which could include other preferred shares at a discounted price or conversion into common shares. Strategy Inc.’s common equity has experienced a steep decline of roughly 75% over the past twelve months, reflecting pressure on the company’s Bitcoin‑accumulator business amid broader cryptocurrency market weakness. The contemplated transaction is expected to be structured as a Section 3(a)(9) exchange, a mechanism that permits a tax‑free reorganization of securities under applicable securities law. No specific pricing, timing, or definitive terms have been disclosed.