Distressed-debt funds are negotiating to swap Strategy's preferred shares as STRC trades below par and annual dividend obligations near $1B.

Bringing Strategy's preferred shares back to $100 is key to restarting Strategy's capital engine, the bank said, with repeated management actions expected to support both…

Strategy sold 32 Bitcoin for $2.5M to fund preferred stock dividends, posting $8.32B in unrealized losses and sending MSTR shares down over 8%.