Strike’s New Pitch: Borrow Against Bitcoin Without Ever Being Liquidated
At the Bitcoin 2026 event in Las Vegas, Strike chief executive Jack Mallers introduced a lending product designed to quiet the single biggest fear among Bitcoin holders: the threat of forced liquidation. The company’s new “volatility-proof” loans promise that a customer’s collateral stays untouched no matter how violently the BTC price swings.
According to Mallers, Strike’s own clients made the request loud and clear. Sudden downward price wicks and the liquidations they trigger ranked above every other concern. Borrowers said they would happily pay an additional fee in exchange for an ironclad guarantee that their coins would remain safe.
How the Liquidation-Proof Loan Works
To deliver on that promise, Strike teamed up with stablecoin issuer Tether (CRYPTO: USDT). The volatility-proof option launches first for private clients who reach out directly, before rolling out to all app users over the coming weeks and months.
Alongside the new product, Strike sharpened its overall pricing. Bitcoin-backed loans and lines of credit now start as low as 7.49% and are available in nearly every U.S. state, as well as across the European Union.
Segregated Collateral and On-Chain Transparency
For larger borrowers, the Strike-Tether partnership introduces segregated collateral addresses. Anyone holding 50 BTC or more can request a dedicated address and watch their coins sit untouched on the blockchain at any moment.
- Eliminates the risk of rehypothecation
- Lets customers independently verify their collateral on-chain
- Backed by Strike’s first lending proof-of-reserves
- Confirmed by quarterly reviews from external auditors
These external audits are meant to assure clients that their collateral genuinely exists and is never quietly recycled into other ventures.
A $2.1 Billion Tether Facility to Scale Lending
Mallers argued that the main obstacle holding back Bitcoin credit hasn’t been demand — it’s been funding. Because Bitcoin-backed loans carry no government backstop, finding capital partners willing to bankroll the sector at scale has been the real challenge.
That, he said, is now solved. A $2.1 billion credit facility provided by Tether gives Strike the firepower to satisfy nearly any borrowing demand from holders who want liquidity without parting with their coins.
“I challenge you guys to try me. Try to give me an order that you don’t think I can fill,” Mallers told the audience. “I promise you, Tether and I can fill that order.”
He added that Strike’s Bitcoin credit lineup has become the most successful product suite he has launched in nearly 14 years working in the industry.
A Proposed Merger: Strike, 21 Capital and Electron
Mallers also disclosed a bigger ambition. Major shareholders of 21 Capital have proposed combining Strike, 21 Capital, and Tether’s Bitcoin mining arm, Electron, into a single entity.
Electron is no small player — it commands roughly 5% of the current Bitcoin network, running about 50 exahash of hashing power.
The combined company, as Mallers described it, would operate across four divisions:
- Financial services
- Bitcoin infrastructure
- Capital markets
- Mergers and acquisitions
Mallers stressed that he wants to build something distinct from crypto casinos and from companies that simply hoard Bitcoin on a treasury balance sheet. His vision pairs profitable, real operating businesses with what he called conviction-driven Bitcoin accumulation.
Frequently Asked Questions
What is a volatility-proof Bitcoin loan?
It’s a Bitcoin-backed loan from Strike where the borrower’s collateral cannot be liquidated regardless of how far the BTC price falls. Customers pay an additional fee for this protection.
How can borrowers verify their collateral is safe?
Clients holding 50 BTC or more can request a dedicated, segregated address and monitor it on the blockchain at any time, ensuring their coins are never rehypothecated.
What rates does Strike offer on Bitcoin loans?
Strike has lowered pricing to as low as 7.49% and offers loans and lines of credit in nearly every U.S. state plus countries across the European Union.
What is the $2.1 billion Tether facility for?
The credit facility supplies the capital Strike needs to fund Bitcoin-backed loans at scale, addressing the financing bottleneck that has limited the sector.
The Bottom Line
Strike is betting that Bitcoin holders want one thing above all: liquidity without surrender. By eliminating liquidation risk, opening collateral to on-chain verification, and securing a multibillion-dollar funding line from Tether, Jack Mallers is positioning Strike as a serious lender — while floating an even larger merger that could reshape how Bitcoin financial services, mining and capital markets fit under one roof.
This article is for informational purposes only and does not constitute investment advice.