Jack Mallers’ Strike Launches Bitcoin-Backed Loans With No Margin Calls or Price Liquidations

TLDR

• Strike has launched a new Bitcoin-backed loan that removes margin calls and forced price liquidations
• The loans carry an APR of up to 14.2%, higher than Strike’s standard product
• Borrowers are protected from price drops as long as they keep up with payments
• Missing a payment triggers a 10-day grace period before Strike may liquidate collateral
• Loans are available in most US states for personal and business use, starting at $10,000

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Strike, the Bitcoin financial services platform led by CEO Jack Mallers, has launched a new Bitcoin-backed loan product it calls “volatility-proof.”

The product removes margin calls and price-triggered liquidations. No matter how far Bitcoin falls in price, borrowers will not have their collateral sold off — as long as they keep making payments.

The move comes after Strike’s first Bitcoin loan product, launched in May 2025, triggered many liquidations when Bitcoin dropped 54% from peak to trough.

The new product came directly from customer feedback following that experience.

Bitcoin is currently trading around $63,000, after falling to $58,190 on June 25. It hit an all-time high of $126,080 in October.

The Cost of Protection

The protection comes at a price. The new loans carry an annual percentage rate between 10.7% and 14.2%.

That is 2.95 percentage points higher than Strike’s standard loan product, which charges between 7.75% and 11.25%.

Mallers says the extra charge goes toward hedging in the market to cover the added risk Strike takes on by removing price triggers.

The maximum loan-to-value ratio is 45%. That means a borrower putting up $100,000 in Bitcoin as collateral can borrow up to $45,000.

Loan terms run for six months. That is shorter than Strike’s standard product.

What Happens If You Miss a Payment

Borrowers who miss a payment are not immediately liquidated. Strike gives them a 10-day grace period to pay or contact the company to explain their situation.

If Strike does not hear from a borrower after that period, it may begin selling their Bitcoin to cover the overdue amount.

Bitcoin investor Fred Krueger said the product could reduce forced selling during market crashes, with defaults driven by borrowers’ inability to pay rather than price swings.

Rob Topping of Vibes Capital Management called it a good product for those needing liquidity, but acknowledged the 14% rate is expensive.

The loans are available in most US states for both personal and business use. The minimum loan is $10,000 for personal borrowers, and as low as $5,000 for businesses in certain states.

Other companies offering Bitcoin-backed loans include Binance, Coinbase, Nexo, and Xapo Bank.

A June report from crypto lender Ledn found that while 88% of crypto investors said they would consider a crypto-backed loan, only 14% currently use one.

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