Bitcoin-Backed 'Digital Credit' Tokens Plunge, Then Rebound

A new part of the crypto market built on corporate bitcoin holdings came under heavy selling pressure on Friday. CoinDesk reported that the preferred-equity tokens STRC, issued by Strategy, and SATA, issued by Strive, fell sharply before both recovered. STRC dropped to an intraday low near $82.50 and SATA fell from near its face value toward $90 before rebounding, according to market data.

Strive chief executive Matt Cole said the swings were driven by leverage liquidations, not credit concerns, calling it the most difficult day in the short history of "digital credit." He argued that leveraged traders amplify gains but are forced to sell during reversals, pushing prices down regardless of fundamentals, and said reserves were intact and all obligations could be met. The instruments pay high advertised dividends, 13 percent on SATA and 11.5 percent on STRC, financed by bitcoin held on corporate balance sheets.

The episode came as bitcoin itself traded near $64,000, down about 1.3 percent over 24 hours and well below the levels above $120,000 reached in late 2025. The combination underscores how products that promise fixed, high yields based on a volatile asset behave when forced selling arrives.