Bitcoin Crashes 50%, But Digital Credit STRC & SATA Shine: Is This the Future?

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Strive CEO: <a href="https://jpyxx.com/btc-usd/">Bitcoin</a>’s 50% Crash Shows Why Digital Credit Is the Future

According to Strive CEO Matt Cole, their digital credit products, STRC and SATA, performed better than Bitcoin during its recent significant price drop of 50%. He described both products as very reliable, as more people become interested in crypto-linked investments that offer returns.

Cole shared his thoughts on X (formerly Twitter) about the recent Bitcoin price drop. Bitcoin’s value fell from around $126,000 in October 2025 to approximately $60,000 in February. This decline put pressure on new investment products that are linked to the amount of Bitcoin companies hold.

How Digital Credit Held Up

Strategy’s STRC and Strive’s SATA are both types of preferred stocks that pay a fixed rate, but that rate can change. Currently, STRC yields about 11.5%, while SATA pays a 12.75% dividend after a small recent increase. These stocks are designed to generally trade at their face value.

Stocks of companies holding large amounts of Bitcoin, like Strategy and BitMine, dropped significantly during the February market downturn. However, their preferred shares held their value relatively well. Since launching in November 2025, SATA has seen approximately $1.28 billion worth of trading over 104 days.

As a crypto investor, I found what Strive CEO Matt Cole said really interesting. He pointed out that even though Bitcoin took a big hit – down 50% – digital credit actually performed surprisingly well. He specifically highlighted that STRC and SATA seem like really solid, reliable assets in this space. It sounds like we’re still very early in the game when it comes to digital credit, and I’m excited to see how it develops!

— BitcoinTreasuries.NET (@BTCtreasuries) April 28, 2026

STRC and SATA as Bitcoin Credit Instruments

In March, Strive invested $50 million in Strategy’s STRC bonds. The company views this as a strong investment offering good returns and easier access to cash compared to typical bonds. Strive also currently holds approximately 13,311 Bitcoin in addition to its cash holdings.

As an analyst, I’ve been tracking Strive’s recent move to increase the SATA dividend rate by 0.25%. They did this to maintain the security’s trading price around $100. Interestingly, SATA actually surpassed that $100 mark back in March, with trading volume briefly exceeding that of JPMorgan preferred shares.

This means SATA is setting aside funds to cover roughly $56 million in annual dividend payments. Strive claims these assets could cover almost 19 years of payments based on current Bitcoin prices. The goal of this financial cushion is to help maintain SATA’s value even when the private credit market faces difficulties.

“STRC & SATA are extremely credit-worthy instruments,” Cole said at Bitcoin 2026 Conference.

Digital lending is being tested right now, as Bitcoin’s price remains significantly lower than its peak. Whether Cole’s assertion that the market is stable will be proven correct depends on if prices continue to fall.

Looking at other companies connected to Bitcoin, the picture isn’t as bright. Some, like Strategy shares, have fallen dramatically – around 70% from their high point last year. And BitMine is currently facing significant unrealized losses – roughly $3.8 billion – due to the value of their cryptocurrency holdings.

Cole has often described digital credit as a potentially massive market, worth trillions of dollars. Whether Bitcoin-based investments that offer returns can become a common way to lend money will depend on how well they perform during difficult economic times.

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2026-04-29 18:53