Strike CEO Jack Mallers Unveils Bitcoin Lending Transparency, Volatility-Proof Loans, and $2.1B Credit Facility

Strike CEO Jack Mallers Introduces Lending Proof-of-Reserves and Volatility-Proof Bitcoin Loans

Strike CEO Jack Mallers announced a series of product updates and strategic initiatives on Wednesday, including the launch of lending proof-of-reserves, a new "volatility-proof" bitcoin-backed loan structure developed with Tether, and a $2.1 billion credit facility.

Strike’s Bitcoin-Backed Loan Business Expands with Lower Rates

Mallers highlighted the growth of Strike’s bitcoin-backed loan and line-of-credit business, noting that users prefer borrowing against bitcoin rather than selling it. He described bitcoin as a savings account for many customers and announced that Strike reduced its rate tiers across the board. Pricing now ranges from approximately 10.5% APR for loans under $250,000 to approximately 7.49% APR for loans exceeding $5 million.

Lending Proof-of-Reserves Enhances Transparency for Borrowers

Strike introduced its first lending proof-of-reserves, allowing borrowers to verify that their collateral is present and segregated in a distinct on-chain address.

"We want you to trust us and know that we are who we say we are,"

Tether and Strike Launch "Volatility-Proof" Bitcoin-Backed Loans

The two companies jointly developed a "volatility-proof" bitcoin-backed loan structure designed to eliminate the risk of forced liquidation during bitcoin price declines or broader market downturns. The segregated collateral product is now available through Strike’s private client desk, while the volatility-proof loan feature is part of the bitcoin-backed lending suite.

Strike Secures $2.1 Billion Credit Facility to Meet Lending Demand

Mallers announced that Strike has secured a $2.1 billion credit facility, which he said provides the company with the capacity to meet demand at any order size within its lending business.

Tether Proposes Merger to Create Vertically Integrated Bitcoin Company

Earlier on Wednesday, Tether Investments published a proposal to merge Twenty-One Capital with Strike and Elektron Energy, a large-scale bitcoin mining operator managing approximately 50 EH/s, or roughly 5% of the current Bitcoin network hashrate.

Tether stated that the combined entity would integrate bitcoin treasury holdings, mining, financial services, lending, and capital markets under a single listed platform. Mallers expressed his support for the plan.

"Simply put, I think it’s a great idea,"

Mallers Outlines Bitcoin Industry Quadrant Framework

Mallers used a quadrant framework onstage to argue that the Bitcoin industry lacks a segment combining high conviction with high operating income. He categorized crypto exchanges as high-income, low-conviction businesses, citing their profitable operations but broad asset listings. He placed bitcoin treasury companies in the high-conviction, low-income quadrant, describing them as deeply committed to bitcoin but limited in business scope.

He referenced Coinbase as an exchange that could increase its bitcoin holdings on its balance sheet and praised MicroStrategy executive chairman Michael Saylor for his bitcoin advocacy.