#STRC Continues to Depeg: Leverage Liquidations Hit New Lows

Strive CEO Matt Cole spoke just yesterday, saying that the violent swings in STRC and SATA are “leverage liquidations,” not credit deterioration. STRC dumped to around $82.5 before bouncing, and SATA also briefly touched $90. Cole stressed that the issuer’s credit is solid, with sufficient dividend reserves, and urged everyone not to panic.

But the veteran retail traders have to ask one thing: does this explanation really hold up? What exactly is the pricing anchor for STRC? It was supposed to be pegged to a $100 face value, but it’s now trading at the $80s, and the yield has already surged to over 13%. Can this really be explained by “leverage liquidations”? Or is the market pricing in the real risk of Strategy ahead of time?

Even more painfully, Strategy (MSTR)’s recent actions: in early June, for the first time since 2022, it sold 32 BTC to raise funds for dividends. It’s sitting on huge unrealized losses, and its cash runway at one point dropped to just 6 months. mNAV has compressed; STRC has continued to trade below face value, and retail investors and leveraged players are all feeling the pressure. The corporate BTC treasury model is getting its reality check—right in the mouth.

The impact on the crypto space is direct: if a “benchmark” like Strategy can’t hold up and starts selling coins, BTC prices will look even uglier. Personally, I’ve completely given up on this “corporate endorsement” narrative. Taking spot holdings and researching on-chain data yourself is far more reliable than chasing whatever you want—like STRC or SATA. Once the leverage liquidation wave hits, whoever runs first lives.