Strike launched a new lending program that lets customers borrow against their Bitcoin holdings. Unlike conventional crypto-backed loans, the product doesn’t trigger automatic liquidations during market downturns because it uses higher interest rates to offset the added risk.
Strike CEO Jack Mallers introduced a new Bitcoin-backed loan product that eliminates margin calls and forced liquidations caused by declines in Bitcoin’s price. The loans carry annual percentage rates (APR) ranging from 10.7% to 14.2%, depending on the terms.
The new lending program responded to customer feedback on Strike’s first loan product, which launched in May 2025. During Bitcoin’s price decline, many borrowers saw their collateral liquidated. Under the new structure, even a sharp drop in BTC’s price won’t automatically trigger the sale of collateral.
According to Mallers, the additional fee is used to hedge market risk, allowing the company to eliminate forced liquidations when Bitcoin’s value falls. Strike’s standard loan product remains less expensive, with APRs ranging from 7.75% to 11.25%.
The company emphasized that this protection applies only to market volatility. If a borrower misses a payment, they’ll have 10 days to make the payment or contact the lender. After that period, Strike may begin selling part of the pledged collateral to repay the outstanding balance.
The loans are already available to individuals and businesses across most U.S. states. The maximum loan amount is capped at a 45% loan-to-value (LTV) ratio. For example, a customer pledging BTC worth $100,000 can borrow up to $45,000.
Strike said it launched the new product in response to the market’s high volatility. According to the company, Bitcoin fell by more than 30% on 10 occasions over the past 12 years, and since 2014, it has declined by more than 50% four times. The latest market cycle was also severe. By early June 2026, the price of the leading cryptocurrency had fallen by more than half from its all-time high of about $125,000, reached in October 2025.
