The cascading effects of leveraged liquidations are more terrifying than a breach of contract, and Saylor’s digital credit experiment is exposing structural vulnerabilities.

CoinWorld News reported that Cryptonews covered that Strategy, Saylor’s company, issued perpetual preferred stock STRC, which experienced severe volatility on June 18, 2026. Its share price fell to $82.50 within a single day, far below its approximately $100 par value, and it ultimately closed at $88.59. On the same day, another preferred stock called SATA also declined, with the drop being significant. Strive CEO Matt Cole said this was “the most difficult day in digital credit history,” and emphasized that no default occurred; the losses were caused by leverage liquidations. This incident revealed the fragility of the Bitcoin-backed “digital credit” market. Although the issuer’s financial condition did not worsen, market volatility and leverage effects expose these securities to real price risk.