Bitcoin credit market expands after June leverage shock

Bitcoin investors are getting an early read on whether corporate treasury strategies can support a larger credit market. After a sharp June selloff in Bitcoin-backed preferred shares, the market stayed open, dividends kept flowing, and companies continued buying BTC.

BitcoinTreasuries.net said the downturn was the sector's first meaningful stress test. The pressure centered on leveraged trades in Strategy's STRC and Strive's SATA, two preferred-share products that had traded close to their $100 stated value for months. When Bitcoin fell below $60,000 in June, both dropped below par and margin calls forced more selling. STRC fell to about $75, while SATA slipped to around $88.

The rebound was uneven but notable. By publication, STRC had recovered to about $87 and SATA to roughly $97. Combined June trading volume topped $10 billion, with STRC alone reaching $8.7 billion. Even so, neither issuer raised fresh capital through at-the-market sales in June because most trading was in existing shares. Strategy still added 3,625 BTC during the month, and Strive bought 3,364 BTC.

The model is also spreading beyond the US. On July 10, Metaplanet announced a joint study in Japan with Siiibo Securities, JPYC, and Progmat to explore tokenized credit instruments that use Bitcoin as backing or credit support. The project is still early, with no issuance date or final structure.