A significant downturn in digital credit offerings has highlighted the challenges of an emerging market, but Strive's executive insists that the core credit fundamentals are still sound.
By AI Boost Jun 22, 2026, 8:14 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred onLatest developments: Digital credit instruments linked to Strategy's bitcoin-backed framework experienced significant declines last week, although they have since shown signs of recovery.
- Strategy's preferred stock vehicle, STRC, plunged to a low of $82.53 on Thursday before bouncing back to around $90.50, as reported by Strive’s Chief Risk Officer, Jeff Walton.
- Strive's SATA also fell into the low $90s before recovering to approximately $98.59.
- Walton attributed the fluctuations to liquidations due to leverage and substantial selling pressure, rather than any decline in the quality of the underlying credit.
- CEO Matt Cole previously labeled the situation a "leverage liquidation event, not a credit failure."
- Jennifer Sanasie from CoinDesk interviewed Strive Chief Risk Officer, Jeff Walton, on Public Keys.
What happened: Strive's perspective emphasizes that the selloff was driven by forced selling rather than a failure within decentralized finance markets.
- Walton indicated that trading metrics reveal that holders offloaded their assets, which led to liquidations in traditional financial sectors.
- He noted that the event did not seem to originate from DeFi protocols.
- The selloff coincided with notably high trading volumes across both securities.
- Walton described the volatility as a typical phase in the development of a new asset class.
The liquidity story: Strive posits that the market's capacity to handle substantial trading volumes is an encouraging indicator.
- On Thursday, STRC had trading volumes of around $950 million, according to Walton.
- SATA saw about $150 million in trading volume on the same day.
- Walton contrasted these figures with BlackRock's preferred securities ETF, PFF, which had a trading volume of roughly $77 million.
- He asserted that robust liquidity is essential for attracting institutional investors and fostering long-term market acceptance.
Reading between the lines: Strive believes that digital credit represents a much larger opportunity than is currently recognized by the market.
- Walton observed that investors seemed to be shifting between SATA and STRC as their yields aligned.
- He claimed that these products are simpler to price and trade, as markets can continuously evaluate risk and value.
- Strive is optimistic that digital credit could ultimately tap into a credit market valued at approximately $300 trillion.
- Walton characterized the products as providing one of the most appealing risk-return ratios available in credit markets.
What comes next: Executives assert that the recent fluctuations do not undermine the long-term viability of the products.
- Walton stressed that SATA and STRC are credit instruments, not stablecoins.
- He noted that Strategy’s balance sheet is in a much stronger position compared to the 2022 bitcoin bear market.
- Currently, according to Walton, Strategy operates with about 10% leverage, in contrast to approximately 130% during the previous market cycle.
- He anticipates that market participants will gain a clearer understanding of the products over time and believes prices will trend back towards their $100 target levels.
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CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
By CoinDesk ResearchJun 15, 2026In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
Why it matters:
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
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