Strive CEO Blames STRC and SATA Plunge on Leverage Liquidations, Citing Strong Credit

Strive CEO Matt Cole said the steep sell-off in digital credit tokens Strategy (STRC) and Strive (SATA) was driven by leverage liquidations rather than any weakening in the issuers’ credit fundamentals. Cole described the session as one of the most volatile in the sector, with STRC falling to about $82.50 and SATA dropping into the low $90s before both rebounded as buyers returned ^{[1] [2]}.

In comments characterized by multiple outlets, Cole said the price action reflected a forced-selling “cascade” tied to leveraged investors, and he added that the issuers’ credit profiles remain strong and that dividend reserves were intact. He also pointed to significant buying near the intraday lows following the sell-off ^{[3] [4]}.

Cole’s explanation places responsibility for the sharp intraday declines on leverage-related liquidation pressure rather than deterioration in underlying credit quality, while noting that both assets recovered after the downturn ^{[1] [2]}.