Strike launches volatility-proof Bitcoin loans

• Strike has launched a Bitcoin-backed loan that removes margin calls and price-based liquidations in exchange for higher interest rates and shorter loan terms.
• The new product carries annual percentage rates of between 10.7% and 14.2% and allows borrowers to access up to 45% of their Bitcoin's value.
• Strike said the additional fees fund hedging strategies designed to protect loans from Bitcoin price volatility.

Strike launched a Bitcoin (CRYPTO:BTC)-backed loan designed to eliminate margin calls and price-based liquidations, offering borrowers protection from market volatility in exchange for higher borrowing costs and a six-month loan term.

Strike chief executive Jack Mallers said the product was developed after customers experienced liquidations under the company's previous Bitcoin loan offering, which launched in May 2025 during a period when Bitcoin fell 54% from peak to trough.

“No margin calls. No price liquidations. No matter how far bitcoin falls, your bitcoin doesn't move,” said Strike chief executive Jack Mallers.

The new loans have a maximum initial loan-to-value ratio of 45%, allowing customers to borrow up to US$45,000 against US$100,000 of Bitcoin collateral, while annual percentage rates range from 10.7% to 14.2% compared with 7.75% to 11.25% for Strike's standard loans.

Borrowers who miss a payment have 10 days to repay or contact Strike before the company may begin selling Bitcoin collateral to recover overdue amounts, making the product protected against price volatility rather than all forms of liquidation.

Strike said the higher interest rates fund additional market hedges designed to reduce the impact of Bitcoin price swings, while customers can use the loans for new borrowing, refinancing or debt consolidation in most US states.

The launch comes as cryptocurrency lenders continue expanding Bitcoin-backed lending products despite limited adoption, with a June report from Ledn finding that 88% of surveyed crypto investors would consider a crypto-backed loan but only 14% currently use one.

At the time of reporting, Bitcoin price was $62,714.06.