Digital credit market hit by huge selloff as Strive CEO blames leverage liquidations
The digital credit market experienced a significant selloff, which Strive CEO Cole attributed to leverage liquidations rather than a decline in credit quality. Despite the volatility, the firm maintains that its underlying credit profile remains strong and that the market is rebounding.
Why it matters
It illustrates the risks associated with leveraged positions in emerging digital asset markets and how market sentiment can decouple from fundamental creditworthiness.
Cole said it was "the most difficult day in the history of Digital Credit," in a post on X , as Strategy s preferred equity STRC fell as low as $82.50 before recovering to $89, while Strive s SATA dropped from its par value fell below $93 before rebounding to $97. Both products are designed to trade close to their $100 par value
The report relies on statements from the company CEO and market data, maintaining an objective financial reporting style.
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