In brief – Strive CEO Matt Cole called Thursday’s preferred equity performance the “most difficult day ever” for digital credit products. – Strive’s SATA and Strategy’s STRC fell further from their par values, potentially as a result of unwinding leverage positions. – The assets…
e designed to trade around $100, but closed the day below their marks at $97.71 and $88.59, respectively. “Digital credit” preferred share offerings from Bitcoin treasury firms suffered their worst day ever on Thursday, according to Strive CEO Matt Cole, who called out leveraged positions as the culprit behind price plunges while defending the quality of the underlying credit instruments. Cole’s comments follow the Thursday price plunges for SATA and STRC, the respective preferred equity and digital credit products from his firm and Bitcoin treasury giant Strategy, falling well below their par values, or the price they are designed to trade near. “Today was the most difficult day in the history of digital credit,” Cole posted on X on Thursday afternoon. “What happened today was a leverage liquidation event, not a deterioration in underlying credit quality.” According to Cole, when investors see an attractive yield opportunity with limited volatility, they often seek to lever up, or increase their position with borrowed capital
Today was the most difficult day in the history of Digital Credit.$STRC traded as low as $82.50 before recovering sharply. $SATA traded from par down to the low 90s before also rebounding. It was a difficult day for many investors. What happened today was a leverage… — Matt Cole (@ColeMacro) June 18, 2026 “Many eventually decide that owning it is not enough.
They borrow against it. They lever it,” he wrote. “That works until it doesn’t.” Both SATA and STRC saw outsized trading volumes on Thursday, notching their second- and fourth-largest trading days with $153 million and $941 million respectively, according to data shared by Strive’s Chief Risk Officer Jeff…