$STRC Saleora was swept out via liquidations

CEO Strive, Matt Cole, explains that this isn’t a credit issue, but a cascade of liquidations triggered by leverage.

Strive builds credit instruments around BTC reserves and a dividend model.

Cole says the reserves for dividends haven’t gone anywhere, and fundamentally nothing has changed for the company.

The problem was that part of the market entered these instruments with leverage, and with a sharp move, positions began to be forcibly closed.

As a result, the drop looked like credit stress, though, in his view, it was specifically a technical wipeout—an exodus—of overheated positions.

After the sell-off, strong demand emerged, and assets quickly rebounded from the lows.

For the digital lending market, this is a harsh lesson: even if the balance sheet is fine, leverage can still trigger severe volatility.