Strive CEO: Price Volatility in Digital Credit Stems from Leverage Liquidation Events, Not a Deterioration in Underlying Credit Quality
Svmuu News: Strive’s CEO posted on X, stating that today was the most challenging day in the history of digital credit. STRC traded as low as $82.50 before rebounding sharply, and SATA also rebounded after falling from near par value to the low $90 range. Today’s events were the result of leveraged liquidations, not a deterioration in underlying credit quality. Strive’s dividend reserve remains intact; the company is not under pressure and remains capable of meeting its obligations and continuing to execute its strategy. The issuers’ credit profiles remain robust, and the underlying credit conditions have remained largely unchanged from before today’s volatility. Both STRC and SATA saw significant buying near their intraday lows, driving prices higher. A liquidation event is not the same as a credit event, and today’s price movements have not altered the company’s confidence in the long-term opportunities of digital credit.
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Source:Odaily · Source Link
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