Strive says digital credit selloff was a liquidation event, not a credit crisis

Strive said last week’s selloff in digital credit products tied to Strategy’s bitcoin-backed ecosystem was driven by leverage liquidations and heavy selling pressure, not a deterioration in credit fundamentals, according to CoinDesk. Strive Chief Risk Officer Jeff Walton said Strategy’s preferred stock funding vehicle STRC fell to $82.53 on Thursday before rebounding to about $90.50, while Strive’s SATA dropped into the low $90s before recovering to about $98.59. Walton said the move did not appear to originate from DeFi protocols and noted STRC traded about $950 million and SATA about $150 million in volume that day.