Strike Launches Bitcoin-Backed Loan with No Margin Calls or Price Liquidations

Highlights:

• Strike launched a Bitcoin-backed loan that removes margin calls and price-based liquidations.
• Borrowers can keep their Bitcoin collateral if they make every payment on time.
• Higher interest rates help Strike protect borrowers from sharp Bitcoin price swings.

Strike, a Bitcoin financial services platform, has launched a new lending product that removes margin calls and price-based liquidations from Bitcoin-backed borrowing. The product allows customers to borrow US dollars while keeping their Bitcoin locked as collateral, even during sharp market declines.

JACK MALLERS LAUNCHES VOLATILITY-PROOF BITCOIN LOANS 👀

Jack Mallers' Strike has introduced Bitcoin-backed loans with no margin calls and no price-based liquidations.

🟠 Borrow cash without selling your BTC.
🟠 A Bitcoin price crash won't trigger liquidation.
🟠 Your collateral… pic.twitter.com/5F02R8UE9k

— CryptosRus (@CryptosR_Us) July 8, 2026

Strike founder and chief executive Jack Mallers said the company developed the loan after customers requested stronger protection from forced selling during Bitcoin price swings. Mallers described the product as a “volatility-proof” loan because Bitcoin price movements alone cannot trigger margin calls or liquidations. Unlike many crypto lending products, Strike removes loan-to-value price triggers that usually force borrowers to add collateral or lose Bitcoin after steep price declines.

Introducing volatility-proof loans by @Strike: bitcoin-backed loans the price can never liquidate.

No margin calls. No price liquidations. No matter how far bitcoin falls, your bitcoin doesn't move.

Volatility is inevitable. Liquidation isn't. Borrow dollars. Keep the bitcoin. pic.twitter.com/U1DtEtt6Jm

— Jack Mallers (@jackmallers) July 7, 2026

Strike bases the loan on repayment performance instead of Bitcoin price movements. Borrowers can keep their Bitcoin collateral unchanged throughout the loan term if they make every scheduled payment on time. Strike only considers selling collateral after borrowers miss payments, ignore company notices, and fail to resolve overdue balances.

The company introduced its first Bitcoin-backed loan in May last year. Strike issued more than $10 million in Bitcoin-backed loans within two days of that launch. Mallers said customer feedback shaped the latest product after Bitcoin later dropped about 54% from its peak to its lowest level during that period. He said those market conditions showed the need for lending that avoids automatic price-based liquidations.

Customers can use the loans for new financing, refinancing existing loans, or consolidating debt. Strike offers the product to personal and business borrowers across most US states where its lending services operate. Lending requirements vary by state. However, personal borrowers generally qualify for loans starting at $10,000, while some businesses can access loans starting at $5,000.

Bitcoin-Backed Loan Comes With Higher Costs

Strike charges higher borrowing costs because the company uses additional revenue to hedge against large Bitcoin price swings. The company adds a 2.95 percentage-point premium above its standard Bitcoin loan rates. As a result, the annual percentage rate can reach 14.2%. Strike’s standard Bitcoin-backed loans currently charge between 7.75% and 11.25%.

Strike limits the maximum initial loan-to-value ratio to 45% so it can better manage risk during volatile markets. A customer who pledges $200,000 worth of Bitcoin can borrow up to $90,000. The company also limits the product to a six-month repayment term instead of offering longer loan periods.

Mallers said the additional fees fund market hedges that protect both borrowers and the company. He said, “The secret sauce is that we’re taking the extra charge that we’re giving you guys and we’re putting it on extra hedges in the market to protect all of us.”

Strike protects borrowers from Bitcoin price swings but still requires every borrower to meet interest and maturity payment deadlines. The company gives borrowers 10 days to make a missed payment or contact Strike after an interest or maturity payment becomes overdue. The company may sell only enough Bitcoin collateral to cover the overdue amount if borrowers fail to respond or settle the debt.

Strike Targets Trust Gap in Crypto Lending

Strike has launched the product at a time when crypto lenders are developing new lending models to address what Ledn and Protocol Theory describe as the crypto collateral gap. A Ledn research report found that 88% of surveyed crypto holders would consider borrowing against digital assets. However, only 14% currently use crypto-backed loans.

Meanwhile, Coinbase recently launched crypto-backed loans in the United Kingdom through Morpho on Base. The service allows customers to borrow up to $5 million in USDC against Bitcoin, Ethereum, and cbETH. Binance, Nexo, and Xapo Bank also offer Bitcoin-backed lending products that allow customers to borrow against digital assets.