finance
Digital Credit Market Suffers Sharp Selloff as STRC Falls to $82.50
Strive Asset Management CEO Matt Cole attributed the June 19, 2026 decline to leverage liquidations rather than credit deterioration. Both STRC and SATA rebounded from intraday lows.
Jun 19, 5:19 AM·1m read1 source
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The digital credit market experienced one of its sharpest selloffs to date on June 19, 2026. 50 before recovering to $89, while Strive's SATA dropped below $93 from its par value before rebounding to $97. Strive Asset Management CEO Matt Cole described the move as a leverage liquidation event caused by margin calls and forced selling.
Cole stated the decline was not caused by a deterioration in underlying credit quality. Both STRC and SATA are designed to trade close to their $100 par value and offer over double-digit yields. Cole said investors used leverage to enhance returns in the digital credit sector.
Cole called June 19, 2026 "the most difficult day in the history of Digital Credit" in a post on X. U.S. Treasury positions.
Cole stated that the firm's dividend reserves remain intact and the company is not under stress. He added that the firm's underlying credit profile remains largely unchanged. Cole said the sharp rebound from intraday lows showed significant buying interest.
He stated that STRC and SATA experienced significant buying interest off their intraday lows. Cole said a liquidation event and a credit event are not the same thing. He maintained his long-term conviction in digital credit despite the market turbulence.
