Image credit: Strategy
Key Takeaways
- 52% of surveyed investors bought STRC, SATA, or both after the shares fell below par on June 18, while 84% of holders sold neither.
- Combined STRC and SATA volume topped $10 billion in June, a record, with STRC alone accounting for $8.7 billion.
- The report tied the decline to leverage-driven margin calls and Bitcoin’s drop below $60,000, framing the episode as a stress test the market absorbed.
More than half of investors surveyed by BitcoinTreasuries.net bought Strategy’s STRC or Strive’s SATA preferred shares after both fell below their $100 par value in June. The dip-buying came even as combined trading volume in the two Bitcoin-backed instruments topped $10 billion for the month, a record for each security.
Report Cites Leverage and Falling Bitcoin Price in the Slide
STRC and SATA are preferred shares issued by Strategy and Strive, respectively, structured to trade close to their $100 par value and used by both companies to help fund Bitcoin purchases. That stability broke starting June 18, when both shares slid well below par in what BitcoinTreasuries.net called digital credit’s first major stress test.
The report pointed to a buildup of leverage in STRC as the primary driver. According to the report, investors who had borrowed against the shares faced margin calls once prices started falling, and the resulting forced selling pushed both instruments lower. The report also said Bitcoin’s decline below $60,000 during the same period added further pressure on sentiment.
Both shares touched fresh lows before staging a partial recovery. As of the survey’s publication, STRC traded under par near $87, while SATA sat closer to par near $97.
Most Holders Stayed Put, and Volume Set Records
Among survey respondents who reported owning digital credit instruments, a category that made up 70% of the total pool, 84% said they sold neither STRC nor SATA during the downturn. Separately, 52% of all respondents said they bought STRC, SATA, or both after June 18, and most described the price drop as an insignificant issue rather than a warning sign. BitcoinTreasuries.net noted that its audience skews favorably toward the asset class it was surveying.
“We note that our respondent base is strongly pro-digital credit. 87% said they had a positive view of digital credit in general, and 72% were invested in the products.”
Trading volume also remained strong across both instruments. Combined STRC and SATA volume exceeded $10 billion in June without any new at-the-market share issuance from either company. STRC alone accounted for $8.7 billion of that total, while SATA volume reached nearly $1.5 billion, close to double its May figure and enough to produce three of its four highest weekly volumes on record.
Report Frames the Episode as a Test the Market Passed
BitcoinTreasuries.net characterized the June downturn as a stress event the market absorbed rather than a sign of underlying trouble in either instrument.
“18 June was the most significant stress test digital credit has faced. The market absorbed it. Buyers emerged at the lows for both instruments. Both securities recovered substantially by the close.”
Looking further out, survey respondents were broadly optimistic about the sector’s trajectory. About 78% expect the digital credit market to keep growing through the end of 2027, and 22% expect total digital credit supply to exceed $50 billion by that point.
