Strive has clarified that the recent selloff in digital credit was a liquidation event rather than a credit crisis. According to Walton, STRC saw approximately $950 million in trading volume on Thursday, while SATA traded around $150 million. In comparison, BlackRock's preferred securities ETF, PFF, traded about $77 million. Walton emphasized the importance of deep liquidity for attracting institutional investors and supporting long-term adoption.
Strive views digital credit as a significant opportunity, potentially addressing a $300 trillion credit market. Walton noted that investors rotated between SATA and STRC as yields converged, highlighting the ease of pricing and trading these products. Despite recent volatility, Strive maintains confidence in the long-term potential of digital credit, with Walton noting that Strategy's balance sheet is healthier now than during the 2022 bitcoin bear market, carrying only 10% leverage compared to 130% previously. He anticipates that market understanding will improve, with prices returning to their $100 target levels.
Strive Attributes Digital Credit Selloff to Liquidation, Not Crisis
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