Strive Attributes STRC Plunge to Leverage Liquidations

On June 19, 2026, Strive's preferred equity product STRC and Bitcoin treasury giant Strategy's SATA faced significant declines, attributed by Strive CEO Matt Cole to leverage liquidations. While both assets are designed to trade around $100, STRC closed the day at $88.59 and SATA at $97.71.

Cole referred to the day as the "most difficult day ever" for digital credit products, emphasizing that the downturn was not indicative of deteriorating credit quality but rather a consequence of investors unwinding leveraged positions. He noted, "When investors see an attractive yield opportunity with limited volatility, they often seek to lever up." STRC traded as low as $82.50 before recovering slightly.

Trading volume played a significant role in the events of the day, with STRC and SATA recording their second- and fourth-largest trading volumes of $941 million and $153 million, respectively. Strive’s Chief Risk Officer, Jeff Walton, pointed out that such high volumes in smaller products compared to larger ones increases the likelihood of leverage unwinding, stating, "Leverage appears to have been flushed, fundamentals intact, and the instruments absorbed the flow and found balance." Cole’s remarks and Walton's insights highlight the challenges and risks associated with leveraged positions in market environments.