Bitcoin’s $10 billion credit market keeps growing after its first major selloff
Bitcoin-backed corporate credit has passed its first real stress test. In June, a Bitcoin selloff below $60,000 triggered margin calls in leveraged preferred shares such as Strategy’s STRC and Strive’s SATA, pushing both well below their $100 par values. STRC fell to about $75 and SATA to about $88, showing how leverage can turn income products into volatility sources. Even so, the market stayed functional: dividends were paid, trading volumes hit records, and corporate treasuries kept buying Bitcoin. STRC and SATA later rebounded, and combined June volume topped $10 billion, though mostly in secondary trading rather than new issuance. Strategy responded by raising STRC’s annual payout to 12% and adding a cash reserve and buyback tools. The turbulence has not killed interest in the sector. Metaplanet is studying Bitcoin-backed digital credit in Japan, and investors still expect the market to expand, though June underscored the risks of leverage and liquidity.
