Strive CEO Matt Cole called Wednesday “the most difficult day in the history of Digital Credit” after sharp intraday moves in two of the company’s income-style products, STRC and SATA, which many market participants blamed on forced liquidations from leveraged positions.
What happened
STRC plunged to as low as $82.50 before recovering, Cole said on X. SATA slid from par into the low $90s—Jeff Walton later posted that SATA hit an intraday low of $92.88 before bouncing back to $97.71. Cole described the episode as a “leverage liquidation event,” not a sign that the underlying credit quality had deteriorated.
Why it unfolded that way
Cole and other observers say the rout looked driven by margin pressure: investors who borrowed against supposedly stable income assets were forced to sell when prices moved against them, amplifying the drop. That pattern mirrors past episodes in traditional finance, where leverage and thin markets can turn modest moves into steep selloffs. Cole stressed the selling became disconnected from the underlying credit profile and that forced selling—not a credit event—was the culprit.
Strive’s response and product details
Strive said its dividend reserves remain intact and that the company is not under stress, able to meet obligations. The moves drew attention because both STRC and SATA sit inside a nascent market for preferred-equity-style digital credit—products that tie income distributions to Bitcoin treasury strategies and public-market structures.
SATA was listed on Nasdaq as part of Strive’s Bitcoin treasury and digital credit strategy; the offering raised $160 million via a 2 million-share IPO. After the listing, Strive reported holding 7,525 BTC. SATA is described as a variable-rate preferred equity product that aims to grow Bitcoin per share over time, targets a trading range of $99–$101, and carries a 13% annual dividend rate; it moved to business-day dividend payments starting June 16.
Market takeaways
The episode highlights how quickly income products can move when leverage interacts with relatively thin markets. A drop below par can attract bargain-hunting buyers—Cole said there was strong demand near intraday lows—but it also raises questions about liquidity, market depth, and the risks of borrowing to boost returns. With the digital credit market still small, Cole suggested investors, issuers, and market makers can learn from the day’s stress.
What’s next
For investors, the immediate test is whether STRC and SATA can hold their recoveries as liquidation pressure eases. If SATA consistently trades near its $99–$101 target, it would support Strive’s stated market goals; continued volatility would keep leverage and liquidity squarely in focus for this emerging corner of the crypto ecosystem.
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