Strategy · CoinDesk
Strive confirms digital credit selloff was a liquidation event, not a credit crisis
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Latest developments: Digital credit products tied to Strategy's bitcoin-backed ecosystem suffered steep declines last week before partially recovering.
Key facts
- In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024
- Reading Strive sees digital credit as a much larger opportunity than current market participants appreciate
- Latest developments: Digital credit products tied to Strategy's bitcoin-backed ecosystem suffered steep declines last week before partially recovering
- Strive's analysis points to forced selling rather than a breakdown in decentralized finance markets
Summary
Strategy's preferred stock funding vehicle STRC fell as low as $82.53 on Thursday before rebounding to roughly $90.50, according to Strive Chief Risk Officer Jeff Walton. Strive's SATA dropped into the low $90 range before recovering to about $98.59. Walton attributed the move to leverage liquidations and heavy selling pressure rather than deterioration in the underlying credit quality. CEO Matt Cole previously described the episode as a "leverage liquidation event, not a credit failure.