Strive CEO Says STRC, SATA Slump Was Driven by Forced Liquidations, Not Credit Deterioration
Summary
- STRC and SATA slumped intraday, but the move was described as a temporary shock caused by leveraged liquidations.
- Matt Cole said STRC and SATA recovered after plunging and attributed the drop to a cascade of forced selling.
- Cole said the company is not under financial pressure because the issued assets’ credit profiles and dividend reserves remain intact.
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Strategy’s STRC and Strive’s SATA swung sharply lower intraday overnight, but the drop was a temporary shock caused by leveraged liquidations rather than deteriorating credit quality, according to Wu Blockchain. STRC and SATA are preferred stock-style digital credit products backed by Bitcoin.
Strive Chief Executive Officer Matt Cole wrote on social media on June 19 that it was “the toughest day in the history of digital credit.” STRC fell to as low as $82.50 intraday before rebounding sharply, while SATA dropped from around par value to the low $90s before recovering.
Cole said the selloff was driven by leveraged liquidations, not a worsening in the credit quality of the underlying assets. Instead, he described it as the result of cascading forced selling that amplified market pressure.
The credit profiles of the issued assets remain solid, he added, and Strive’s dividend reserves are still intact. The company is not under financial pressure, according to Cole.
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
