Strike Bitcoin loans remove margin calls, add 14% APR trade-off

Strike has launched a Bitcoin-backed loan product built to remove margin calls and price-based liquidations.

Jack Mallers, Strike’s founder and chief executive, said the new product protects borrowers from forced selling when Bitcoin falls. He described the offer as a “volatility-proof” loan that lets users borrow dollars while keeping their BTC posted as collateral.

The launch follows Strike’s first Bitcoin-backed loan product, which arrived in May 2025. As previously reported, Strike issued more than $10 million in BTC-backed loans within two days of that launch.

No margin calls, but not risk-free

The new product removes price-triggered actions tied to loan-to-value levels. Mallers said, “No margin calls. No price liquidations. No matter how far bitcoin falls, your bitcoin doesn’t move.”

That structure differs from many crypto lending products, where a sharp price drop can force borrowers to add collateral or face liquidation. Strike says borrowers can keep their collateral untouched if they make payments on time.

The protection has limits. If a borrower misses an interest or maturity payment, Strike gives a 10-day window to pay or contact the company. If the borrower does not respond or settle the overdue amount, Strike may sell part of the Bitcoin collateral.

Mallers also warned users about the difference between price risk and payment risk. “That’s why we call it ‘volatility-proof,’ not ‘liquidation-proof,’” he said.

Higher cost funds the protection

The new loan carries a higher cost than Strike’s standard Bitcoin-backed loans. The annual percentage rate can reach 14.2%, based on a 2.95 percentage-point premium above Strike’s standard loan range.

Strike’s standard loan product has charged rates between 7.75% and 11.25%, depending on terms and payment choice. The “volatility-proof” version also uses a shorter six-month term and a maximum initial loan-to-value ratio of 45%.

In simple terms, 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 the risk of sharp BTC price moves.

Mallers said the added cost supports hedging. “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,” he said.

Bitcoin lending market searches for trust

The launch comes while crypto lenders keep testing ways to make Bitcoin-backed credit easier to use. A Ledn research report found that 88% of surveyed crypto holders would consider a crypto-backed loan, while only 14% currently use one.

Ledn and Protocol Theory called that gap a trust problem, not only a demand problem. Market volatility, fear of liquidation, and low confidence in lenders have limited wider use.

Other firms also continue to build crypto-backed lending products. As crypto.news previously reported, Coinbase launched crypto-backed loans in the U.K. through Morpho on Base, allowing users to borrow up to $5 million in USDC against Bitcoin, Ethereum, and cbETH.

Strike’s new product tries to address one of the main fears in Bitcoin lending: forced selling during market crashes. It does not remove repayment risk. Borrowers still need to pay on time, and the higher rate makes the product costly for users who need longer-term credit.