Distressed Funds Explore Preferred Share Exchange as Bitcoin Slump Deepens

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According to Bloomberg, distressed asset investment funds that took positions in preferred shares of a major Bitcoin-holding company are discussing a potential exchange of those holdings at a discount with investment bank Moelis & Co. on July 7. The proposed restructuring could involve swapping the preferred shares for other preferred shares or common stock. The exchange may be completed under SEC Rule 3(a)(9), which allows securities exchanges without formal SEC registration.
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