Strike CEO Jack Mallers launched volatility-proof bitcoin loans on July 7, a product that strips price-triggered liquidations from the loan term. Borrowers keep their bitcoin no matter how far the price falls, as long as they keep paying — but they accept a lower loan cap, a shorter term, and a higher rate.
Strike CEO Jack Mallers rolled out a new bitcoin-backed loan product on July 7 that removes price-triggered liquidations from the loan term entirely. Borrowers can keep their bitcoin in place no matter how far the price drops, provided they keep making payments.
That contrasts with Strike's standard bitcoin loans, launched in May 2025. On those, warnings hit at a 65% loan-to-value ratio, margin calls at 70%, and partial liquidations at 85% as the price falls.
Mallers points to customer fear
Mallers described the concern at the Bitcoin 2026 Conference in April. He explained that customers kept asking what would happen if the price wicked down, or if a government headline or stock market crash triggered a liquidation — he called it their biggest fear.
The new loans answer that feedback directly. Borrowers can originate a new loan, refinance an existing one, or consolidate several into a volatility-proof structure, with no option to switch mid-term.
What it costs
The trade-offs are specific. Volatility-proof loans cap initial LTV at 45%, versus 50% on the standard product, and run six months instead of twelve. Interest rates carry roughly a 2.95% premium, pushing them to a range of about 10.44% to 14.2% APR.
In practice, a borrower posting $100,000 in bitcoin can access up to $45,000, compared with $50,000 on the standard loan. Borrowers also lose the option to retrieve collateral mid-term.
The protection has a limit. If a borrower misses an interest payment or fails to repay at maturity, a 10-day grace period applies before Strike can sell part of the collateral. As Mallers put it: "That's why we call it 'volatility-proof,' not 'liquidation-proof.'"
Repayment risk replaces price risk
The design shifts risk from market movement to cash flow. A borrower who cannot make payments still faces a forced sale, so removing the liquidation trigger does not remove risk. The product is limited to fixed-term loans in select U.S. states and excludes California, New York, and Texas under Strike's current terms.
For long-term holders, the appeal is that they can borrow against their stack during a downturn without watching an LTV dashboard. Strike is building the product alongside a $2.1 billion credit facility and a Tether partnership that supports segregated, onchain collateral tracking. The launch lands as bitcoin trades under $62,000, in the middle of a bear market phase that has tested holders since last year's peak.
Source: Bitcoin.com News
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