[Strive CEO: STRC and SATA's Significant Volatility Today Stems from Leverage Liquidation, Not Underlying Credit Deterioration] BlockBeats News, June 19 — Strive CEO Matt Cole stated in a post that today marks one of the most challenging days in the history of digital credit. STRC plunged to an intraday low of $82.50 before rebounding sharply, while SATA dropped from near par value to just above $90 before recovering. Many investors experienced a tough trading day. Matt Cole explained that today's events were a leverage liquidation incident, not a deterioration in underlying credit quality. He noted that when investors identify an asset class with high yields, relatively low volatility, and strong underlying credit characteristics, they often use borrowing and leverage to enhance returns. However, when the market moves in the opposite direction, forced selling can trigger price declines, margin calls, and further selling in a cycle, causing sell-offs to deviate from fundamentals and be driven by balance sheet constraints. He emphasized that the credit quality of the issuers remains robust. Strive's dividend reserves remain intact, the company is not under pressure, and it retains the ability to meet obligations and continue executing its strategy. He also pointed out that both STRC and SATA saw significant buying interest near their intraday lows and quickly recovered, indicating real demand in the lower price range. Matt Cole stated that liquidation events are not the same as credit events. Today's price volatility has not changed his confidence in the long-term opportunities of digital credit. On the contrary, it has reinforced his view that this sector is building a new category of financial instruments and will experience growing pains similar to those seen in the maturation of large fixed-income markets. [Original Link]