Bitcoin-linked Products STRC, SATA Plunge as Margin Call Risks Surge

MicroStrategy (MSTR) preferred shares STRC and Strive (ASST) preferred shares SATA plummeted intraday on the 18th (local time) to $82.5 and the low $90s respectively. These products, based on Bitcoin price-linked strategies, faced a wave of forced liquidation (margin call) crises, heightening anxiety across the entire virtual asset-linked financial market.

Matt Col, CEO of Strive, took to social media platform X to issue an urgent clarification. CEO Col stated, "This plunge is not due to a deterioration in the underlying credit quality of the assets, but rather a mechanical outcome caused by the forced liquidation of positions held by some investors who used excessive leverage.”

He directly referenced instances where highly leveraged hedge funds collapsed after failing to withstand temporary volatility in the U.S. Treasury market, emphasizing that the current situation is merely a temporary liquidity outflow.