Key facts
- Strive CEO Matt Cole described Thursday as the most difficult day ever for digital credit products.
- Strive's SATA security and Strategy's STRC plunged sharply.
- Both securities fell significantly below their par values.
- Fears of leverage liquidation are cited as a cause for the price plunges.
- Strive began offering daily dividends through its $SATA vehicle.
- In the first week of daily dividends, Strive acquired an estimated 603 Bitcoin.
- The acquired Bitcoin were added to Strive's treasury holdings.
Strive CEO Matt Cole described Thursday as the 'most difficult day ever' for digital credit products, as the company's SATA security and Strategy's STRC experienced sharp price plunges. Both securities fell significantly below their par values, triggering concerns about the underlying credit quality and the potential for asset sales. These events occurred in the same week that Strive began offering daily dividends through its $SATA vehicle. In the first week of this new dividend structure, Strive acquired an estimated 603 Bitcoin, which were added to its existing Bitcoin treasury holdings. The plunge in the digital credit products suggests a potential deleveraging event or forced selling pressure impacting these assets.