Strike Rolls Out "Volatility-Proof" Bitcoin Loans: No Liquidations, Just a 14% APR Reality Check 💸

Strike has launched a Bitcoin-backed loan product it describes as "volatility-proof," eliminating margin calls and forced liquidations but requiring borrowers to accept a shorter term, a higher annual percentage rate and strict repayment discipline. CEO Jack Mallers said on Tuesday the product responds to feedback on Strike's first Bitcoin loan, which launched in May 2025 and produced numerous liquidations during a stretch in which Bitcoin ($BTC) fell 54% from peak to trough. "No margin calls. No price liquidations. No matter how far bitcoin falls, your bitcoin doesn't move," Mallers said.

The new loans carry a maximum initial loan-to-value ratio of 45%, meaning $100,000 in Bitcoin collateral can support borrowing of up to $45,000. The APR runs 2.95 percentage points above Strike's standard Bitcoin loan product, which itself charges between 7.75% and 11.25%, placing the volatility-proof rate in a range of roughly 10.7% to 14.2%. The term is six months, and failure to make scheduled payments can still result in liquidation. "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," Mallers said. "If you're OK with a slightly shorter term and a little bit higher of a fee, there is no price move that can liquidate you."

The product arrives against a backdrop of historical Bitcoin volatility that Mallers said has hindered the development of Bitcoin-denominated lending. Bitcoin has dropped 30% or more in 10 of the past 12 years and has experienced drawdowns of 50% or more four times since 2014, he noted. A June report from crypto lending platform Ledn found that while 88% of surveyed crypto investors said they would consider a crypto-backed loan, only 14% use them, a gap Ledn attributed in part to volatility and weak confidence in