Strategy's STRC preferred stock and Strive's SATA fell sharply on June 18 before recovering, with executives attributing the move to forced selling from leveraged positions rather than credit issues.
STRC traded as low as $82.50 to $82.61 intraday, nearly 17 percent below its $100 par value, before rebounding to around $88 to $89. SATA dropped below $93 from par before climbing back to $97. Bitcoin traded near $62,730 during the session while MSTR shares fell 3.4 percent to $112.53.
Strive Asset Management CEO Matt Cole described the episode as a leverage liquidation event driven by margin calls. He noted that both securities saw significant buying interest off their lows and said the firm's dividend reserves remain intact. Cole compared the move to past hedge fund stress in U.S. Treasuries, emphasizing that underlying credit quality had not deteriorated.
Strategy Executive Chairman Michael Saylor posted on X that volatility is never easy but that Bitcoin keeps working. The company designed STRC to trade near par through adjustable monthly dividends currently set at 11.5 percent annualized.
Analysts said the selloff tested confidence in the structure, with potential next steps including higher dividend rates, share buybacks, or additional capital raises.
