- Strike has launched Bitcoin loans without margin calls or price-based liquidations.
- Borrowers keep their Bitcoin as long as they make their loan payments.
Strike has introduced a new Bitcoin-backed loan product that removes one of the biggest risks for crypto borrowers, margin calls and automatic liquidations caused by falling Bitcoin prices.
The new lending option allows users to borrow against their Bitcoin without worrying that a market downturn will trigger the immediate sale of their collateral. However, borrowers must continue making their scheduled payments to keep their Bitcoin secure.
🚨JUST IN: STRIKE LAUNCHES BITCOIN-BACKED LOANS THAT CANNOT BE LIQUIDATED
Jack Mallers' Strike is offering loans against Bitcoin where the collateral is never sold, even if BTC drops 80%, as long as payments stay current.
"You never have to sell your Bitcoin." pic.twitter.com/a9wRSNc7YW
— Coin Bureau (@coinbureau) July 7, 2026
Strike Removes Price-Based Liquidation Risk
The new product follows Strike’s first Bitcoin lending service, launched in May 2025, which led to numerous liquidations during a sharp Bitcoin market decline. Following customer feedback, the company redesigned the service to protect borrowers during periods of high volatility better.
According to CEO Jack Mallers, Bitcoin price swings alone will no longer force borrowers to lose their collateral.
Instead, customers can keep their Bitcoin regardless of how low its price falls, as long as they remain current on their loan payments. The approach is designed to help long-term Bitcoin holders access cash without being forced to sell their assets during market downturns.
Higher Interest Rates Pay for Added Protection
The added protection comes at a higher cost. Strike’s new Bitcoin loans carry annual percentage rates ranging from 10.7% to 14.2%. By comparison, the company’s standard Bitcoin-backed loans offer rates between 7.75% and 11.25%.
Mallers explained that the higher interest helps fund hedging strategies that protect both the company and borrowers from market volatility. The loans also have a maximum loan-to-value ratio of 45%. This means someone pledging $100,000 worth of Bitcoin can borrow up to $45,000.
Loan terms last six months, making them shorter than Strike’s traditional lending product.
Missed Payments Can Still Lead to Liquidation
Although Bitcoin price declines will not trigger automatic liquidations, borrowers must continue making their loan payments. Strike gives customers a 10-day grace period after a missed payment, allowing them to either repay the amount due or contact the company to discuss their situation.
If there is no response after the grace period, Strike may sell enough Bitcoin to recover the outstanding balance. Mallers said this is why the product is “volatility-proof” rather than completely “liquidation-proof,” since missed payments can still result in collateral being sold.
Bitcoin Lending Market Continues to Expand
The service is available in most US states for both individual and business borrowers. Personal loans require a minimum of $10,000, while eligible businesses in selected states can borrow from as little as $5,000. With this launch, Strike joins other major platforms, including Binance, Coinbase, Nexo, and Xapo Bank, in offering Bitcoin-backed lending services.
Interest in crypto-backed lending continues to grow. Recent research from crypto lender Ledn found that while 88% of cryptocurrency investors would consider using Bitcoin-backed loans, only 14% currently use them. Strike’s new product could help attract more borrowers by reducing the risk of market-driven liquidations.
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