Strive CEO: The significant fluctuation of STRC and SATA today is due to leverage liquidation, not underlying credit deterioration

June 19 – Strive CEO Matt Cole issued a statement today marking this as the toughest day in digital credit’s history. STRC hit an intraday low of $82.50 before bouncing back sharply, while SATA dropped from near par to roughly $90 before recovering, leaving many investors with a brutal trading session. Cole explained that today’s volatility stemmed from a leverage liquidation event—not a deterioration of underlying credit quality. He noted that when investors identify an asset class offering high yields, relatively low volatility, and strong credit fundamentals, they often use borrowed leverage to chase higher returns. But when the market moves against their positions, forced selling can trigger price declines, margin calls, and cascading selloffs that pull prices far from actual fundamentals, driven by balance sheet constraints rather than credit health. He emphasized that Strive’s credit quality remains robust: the firm’s dividend reserve is intact, it faces no operational pressure, is fully capable of meeting its obligations, and continues executing its strategy. Both STRC and SATA saw significant buying interest near their intraday lows and bounced back quickly, a sign of real demand for these assets at lower price points. Cole added that a liquidation event is distinct from a credit event. Today’s price swings haven’t shaken his confidence in digital credit’s long-term potential—instead, they’ve reinforced his view that the sector is building a new category of financial instruments and will go through growing pains similar to those the broader fixed-income market experienced before maturing.