Digital credit market hit by huge selloff as Strive CEO blames leverage liquidations

Markets Digital credit market hit by huge selloff as Strive CEO blames leverage liquidations Matt Cole says forced selling from leveraged investors pushed STRC and SATA sharply lower before both rebounded. By James Van Straten | Edited by Jamie Crawley Jun 19, 2026, 9:19 a.m. 2 min read Make preferred on Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Make preferred on Summary Show Matt Cole said the decline was a "leverage liquidation event" caused by margin calls and forced selling, not a weakening of issuers' credit quality. Both STRC and SATA rebounded from their intraday lows, with Cole pointing to strong buying interest as evidence of continued demand for digital credit assets. Cole compared the episode to historical hedge fund blowups involving leveraged U.S. Treasury positions, noting that Treasury securities themselves remained strong credits despite periods of market stress. The digital credit market suffered one of its sharpest selloffs to date on Thursday, with Strive Asset Management CEO Matt Cole describing the move as a leverage-driven liquidation rather than a sign of weakening credit fundamentals. 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 "What happened today was a leverage liquidation event, not a deterioration in underlying credit quality," Cole wrote. Investors attracted by the sector's relatively high yields (both products offer over double digit yields) increasingly used leverage to enhance returns, according to Cole. When prices began falling, margin calls triggered forced selling, creating a self-reinforcing decline detached from the underlying creditworthiness of issuers. "There is an old saying in income markets that the road to hell is paved with carry," he said. Cole compared the episode to historical hedge fund blowups involving leveraged U.S. Treasury positions, noting that Treasury securities themselves remained strong credits despite periods of market stress. "Our dividend reserves remain intact. Our company is not under stress," Cole said, adding that the firm's underlying credit profile remains largely unchanged. The sharp rebound from intraday lows suggests buyers stepped in aggressively as prices declined. "Both STRC and SATA experienced significant buying interest off their intraday lows," Cole noted. "A liquidation event and a credit event are not the same thing," he added, maintaining his long-term conviction in digital credit despite the market turbulence. Bitcoin News Latest Crypto News 1 Microsoft found malware that hijacks crypto wallets and spreads through USB sticks 36 minutes ago 2 XRP falls 3% after losing $1.15 support as breakout attempt fades 4 hours ago 3 Live markets: Bitcoin has traded below its mining cost for five months, squeezing miners 4 hours ago 4 Bitcoin traders load up on bearish bets all the way down to $52,000 4 hours ago 5 Bitcoin falls below $63,000 as risk assets sell off and the week's bounce fades 4 hours ago 6 Ex-Celsius CEO Mashinsky gets U.S. CFTC ban in final resolution with regulator 13 hours ago 7 U.S. agencies seek stablecoin customer-ID rules akin to banks in new GENIUS Act pitch 16 hours ago 8 Ethereum Foundation loses another key leader as co-executive director Hsiao-Wei Wang resigns 17 hours ago 9 Crypto for Advisors: Trading the bitcoin cycle 18 hours ago 10 Algorand unveils roadmap to achieve quantum resistance by 2028 19 hours ago Latest Research CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high. By CoinDesk Research Jun 15, 2026 In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high. Why it matters : In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high. View Full Report More From Markets XRP falls 3% after losing $1.15 support as breakout attempt fades Live markets: Bitcoin has traded below its mining cost for five months, squeezing miners Bitcoin traders load up on bearish bets all the way down to $52,000