Strike has launched a Bitcoin-backed lending product designed to remove margin calls and price-based liquidations.
Jack Mallers, founder and chief executive of Strike, said the new product protects borrowers from forced sales if Bitcoin falls. He described the offering as a “volatility-resistant” loan that allows users to borrow money while keeping their own. $BTC deposited as security.
@Strike presents Volatility-Proof Loans: Bitcoin-backed loans whose price can never be liquidated.
No margin calls. No price clearance. No matter how much bitcoin falls, your bitcoin doesn’t move.
Volatility is inevitable. Liquidation is not. Borrow dollars. Keep the Bitcoin. pic.twitter.com/U1DtEtt6Jm
— Jack Mallers (@jackmallers) July 7, 2026
The launch follows Strike’s first Bitcoin-backed lending product, arriving in May 2025. As previously reported, Strike has issued over $10 million in $BTC-loans guaranteed within two days of this launch.
No margin calls, but not without risk
The new product removes price-triggered actions tied to loan-to-value levels. Mallers said: “No margin calls. No price liquidations. No matter how bitcoin falls, your bitcoin doesn’t move.”
This structure differs from many crypto lending products, where a sharp drop in price can force borrowers to add collateral or face liquidation. Strike says borrowers can keep their collateral intact if they make their payments on time.
Protection has limits. If a borrower misses an interest or due payment, Strike gives 10 days to pay or contact the company. If the borrower fails to respond or pay the overdue amount, Strike can sell part of the Bitcoin collateral.
Mallers also warned users of the difference between price risk and payment risk. “That’s why we call it ‘volatility-proof’ and not ‘liquidation-proof’,” he said.
Higher cost finances protection
The new loan carries a higher cost than Strike’s standard Bitcoin-backed loans. The annual percentage rate can be as high as 14.2%, based on a premium of 2.95 percentage points above Strike’s standard loan range.
Strike’s standard loan product offers rates between 7.75% and 11.25%, depending on terms and payment choice. The “volatility-proof” version also uses a shorter term of six months and a maximum initial loan-to-value ratio of 45%.
Simply put, a borrower who posts $100,000 in Bitcoin can borrow up to $45,000. The lower borrowing limit and higher rate give Strike more room to manage high acuity risk. $BTC price movements.
Mallers said the added cost supports coverage. “The secret is we take the extra fees that we give you and we put them on extra hedges in the market to protect us all,” he said.
Bitcoin lending market seeks trust
The launch comes as crypto lenders continue to test ways to make Bitcoin-backed credit easier to use. A research report from Ledn found that 88% of crypto holders surveyed would consider a cryptocurrency-backed loan, while only 14% currently use one.
Ledn and Protocol Theory called this gap a trust problem, not just a demand problem. Market volatility, fear of liquidation, and low confidence in lenders have limited wider use.
Other companies also continue to create cryptocurrency-backed lending products. As crypto.news previously reported, Coinbase has launched cryptocurrency-backed loans in the UK through Morpho on Base, allowing users to borrow up to $5 million in USDC against Bitcoin, Ethereum, and cbETH.
Strike’s new product attempts to address one of the main fears of Bitcoin lending: forced selling during stock market crashes. This does not eliminate the risk of reimbursement. Borrowers must always pay on time, and the higher rate makes the product expensive for users who need longer-term credit.
