Digital credit market hit by huge selloff as Strive CEO blames leverage liquidations

The digital credit market suffered one of its sharpest selloffs on Thursday, with Strive Asset Management CEO Matt Cole calling it a leverage-driven liquidation rather than a deterioration in credit quality. STRC, Strategy’s preferred equity, fell to $82.50 before recovering to $89, while Strive’s SATA dropped below $93 from its $100 par value and rebounded to $97, according to CoinDesk, as margin calls and forced selling hit leveraged investors. Cole said dividend reserves remain intact and cited strong buying interest off the lows.