According to foreign media, Bitcoin Treasury has built its “digital credit” market around priority shares, and has recently witnessed the first visible stress test. The STRC issued by Strategy and the SATA released by Strive fell in parallel on the 18th of June, and although the subsequent partial recovery was lost, this volatility has enabled the market to begin to reassess the stability of such products.

According to the article, the fact that the issuer attributed the decline to leverage rather than credit deterioration was not necessarily an erroneous explanation but did not eliminate the risk per se. For a group of products that would have preferred to be close to paper prices and attract investors with stable returns, a single-day drop of close to 20 per cent has shown that their trading structure is not stable.

The same day, the two products fluctuated.

On 18 June, Strategy released a permanent priority unit in the STRC disk, which fell to $82.50 at a time, significantly below the face level of approximately $100, and the receipt recovered to about $8,859. During the same period, the SATA issued by Strive also fell from close to the nominal value of the fare to $90, the lowest of which was approximately $9288 and then to around $9,9771.

According to external sources, such products would have been packaged as high-yield, more stable income-type securities, with performance closer to high-yielding debt or priority shares rather than high-variant assets. The two products fell and rebounded on the same date, indicating that their price performance was not fully consistent with the positioning of the Instrument for Stable Gains.

There's a bitcoin hold on the back of the high income.

Both STRC and SATA are permanent priority shares, with no fixed maturity date, and rely on a sustained interest rate to attract investors. The rate of return for STRC is about 11.5 per cent, with a half-monthly rate of interest; and the rate of return for SSATA is about 13 per cent, with a higher rate.

But the key to such products is not interest-rate design, but financial use. Companies that issue these priority shares themselves have adopted bitcoin as their core strategy. That is to say, investors buy a seemingly credit-neutral, yield-oriented security, while the bottom is connected to a highly volatile bitcoin balance sheet.

Weaknesses in liquidity and increased voltage

The issuer stressed that there had been no breach of contract and that the basics had not deteriorated, and that the sale had come mainly from bond pressure and passive sales. In the opinion of external sources, this interpretation is reasonable, as both products rebounded significantly before closing, not following a typical credit event.

However, the central challenge of the article is that, even if this is not a credit issue, the market has seen another layer of risk: Such products are not deeply traded and are less liquid, and once the volatility of the leveraged funds and the bitcoin itself increases, prices may quickly deviate from the face of the paper.

At one point, bitcoin also fell around $62,900, the market was generally weak, and the United States was nearing a holiday weekend and the stock market was off the market the next day. In such an environment, weak mobility is more likely to magnify voltage. For products that rely on “stable returns” to attract funds, this structural vulnerability is in itself a risk exposure.

It's a higher risk.

According to external sources, the significance of this volatility lies not only in the sharp drop in the two securities, but also in the cost of allowing the market to see the so-called “digital credit” products for the first time. Higher interest rates are not unconditional gains, but compensation for inadequate liquidity, the leverage chain and price fluctuations of bitcoin.

If this type of securities continues to expand in the future, investors may no longer be concerned only with the frequency and nominal rate of return, but also with the depth of the transaction, the financing structure, the reserve arrangement and whether the chain will be triggered again when Bitcoin retreats.