Strive Blames Leverage Liquidations After SATA and Bitcoin Giant Strategy's STRC Plunge

Strive says the sharp selloff in its SATA preferred shares and Strategy’s STRC was driven by leveraged liquidations rather than worsening credit fundamentals. Matt Cole described the move as the worst day ever for “digital credit,” while Strive’s risk chief said the market absorbed the selling and rebounded. SATA traded down to the low 90s from par, while STRC fell as low as $82.53 before recovering to close at $88.59. The article highlights concern that these Bitcoin-linked preferred products are vulnerable to leverage unwinds and dividend-payment uncertainty, even as Strive argues the underlying instruments remain intact. Heavy trading volumes underscored the stress, with SATA and STRC seeing $153 million and $941 million in volume, respectively.