Key facts
- Strive CEO Matt Cole stated that the sell-off in STRC and SATA was a leveraged liquidation event.
- The event was not a credit crisis, as issuer fundamentals remained unchanged.
- STRC, a preferred stock from Strategy (formerly MicroStrategy), fell 17.5% to $82.50 intraday.
- SATA, Strive's own preferred equity product, fell into the low 90s.
- Both securities recovered by the end of the trading session.
- Strive's dividend reserves and balance sheet remain strong.
Strive CEO Matt Cole has clarified that the recent sharp decline in digital credit instruments, specifically Strategy's STRC and Strive's own SATA preferred stock, was a result of a leveraged liquidation event rather than a fundamental credit crisis. The sell-off, which saw STRC drop 17.5% to an intraday low of $82.50 and SATA fall into the low 90s, occurred on June 18, 2026.
Cole explained on X that leveraged investors were likely margin called, triggering forced selling in these thinly traded instruments. He emphasized that the underlying creditworthiness of the issuers, Strategy and Strive, remained intact and their balance sheets are conservatively leveraged or debt-free. Strive also confirmed its dividend reserves, backed by cash and STRC holdings, were unaffected and sufficient for 18 months.
Despite the volatility, both STRC and SATA recovered by the end of the trading session. Cole views the episode as an early, albeit difficult, lesson for the nascent digital credit market, drawing parallels to similar leverage-driven dislocations in traditional fixed income. The event is expected to accelerate discussions around risk management and the appropriate level of leverage permitted on such products.