Strive CEO Matt Cole called Wednesday “the most difficult day in the history of Digital Credit” after a sharp intraday selloff in two of the company’s Bitcoin-backed income products, STRC and SATA, that Cole and others say was driven by forced liquidations rather than a deterioration in credit quality.
STRC plunged as low as $82.50 before rebounding, while SATA fell from par into the low $90s — hitting an intraday low of $92.88, according to Jeff Walton — and later recovered to about $97.71. Cole described the move on X as “a leverage liquidation event,” saying it reflected forced selling from leveraged investors rather than any change in the underlying credit fundamentals. He added that Strive’s dividend reserves remain intact and the firm is not under stress.
These products sit inside a nascent market for preferred-equity-style digital credit, which blends income-focused securities with Bitcoin treasury strategies and public-market structures. That structure can amplify returns — and risks — when investors borrow against perceived stable assets. Cole compared the episode to traditional finance income-market stress, where margin calls and deleveraging can push prices far below fundamentals before buyers step back in.
Cole said selling became disconnected from the credit profiles of the instruments, and noted there was strong demand near the intraday lows as buyers stepped in. “A liquidation event and a credit event are not the same thing,” he wrote, emphasizing that Strive remains able to meet its obligations.
Key context: Strive listed SATA on Nasdaq as part of its Bitcoin treasury and digital credit strategy, raising $160 million in a 2 million-share IPO. After the listing, Strive reported holding 7,525 Bitcoin. SATA is a variable-rate preferred-equity product the firm says is aimed at growing Bitcoin per share over time. Strive targets SATA trading in a $99–$101 range; the product carries a 13% annual dividend and moved to business-day dividend payments starting June 16.
The episode underlines how quickly income and preferred-style products can move when leverage and thin liquidity collide. A drop below par can attract buyers, but it also raises fresh questions about liquidity, leverage, market depth, and how these instruments behave under stress in a still-small market.
For now, Strive’s message is stability: reserves intact, credit profile unchanged. The next test for investors is whether STRC and SATA can hold their recovery as liquidation pressures ease. Sustained trading near SATA’s $99–$101 target would support Strive’s stated market objectives; renewed volatility would keep leverage and liquidity risk in the spotlight for digital credit products.
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