Strike launches volatility-proof Bitcoin loans at ~14% APR

Strike on Tuesday launched a “volatility-proof” Bitcoin-backed loan that blocks margin calls and price-driven liquidations. The product carries a six-month term, a maximum initial loan-to-value ratio of 45% and an annual percentage rate about 2.95 percentage points above Strike’s standard loans, placing the volatility-proof APR roughly between 10.7% and 14.2%.

The product was developed after customer feedback on Strike’s first Bitcoin loan, introduced in May 2025, which experienced many liquidations as Bitcoin fell. Strike chief executive Jack Mallers said: “No margin calls. No price liquidations. No matter how far bitcoin falls, your bitcoin doesn’t move.” He added that the product is “volatility-proof,” not “liquidation-proof,” and that missed payments can still trigger sales of collateral.

Under the terms, a borrower who posts $100,000 in Bitcoin as collateral may borrow up to $45,000 at the start of the loan. Strike said the higher fee funds hedges in the market intended to protect both borrowers and the company from sharp price moves.

Loans can be used for new borrowing, refinancing or consolidating existing debt. Strike offers the product in most U.S. states and accepts applications in personal and business names. Minimum personal loan amounts start at $10,000; in some states business borrowers can access loans as small as $5,000.

Strike set a payment enforcement policy: customers who miss a scheduled payment have 10 days to pay or to contact the company and explain their situation. Mallers warned that if a borrower provides no response after a few weeks, Strike may sell some Bitcoin to cover overdue amounts, calling lack of contact similar to a “hit-and-run.”

Industry participants commented on the product’s design. Investor Fred Krueger described the loan as a way to remove “one of Bitcoin’s biggest structural problems: forced selling during market crashes,” arguing defaults would stem from failure to service debt rather than temporary price swings. Rob Topping, executive chairman at Vibes Capital Management, called the offering “a great product for those who need near-term liquidity and don’t want to risk liquidation,” while noting the APR is high.

Market context: over the past year Bitcoin fell about 54% from an October high to late June. Other firms that offer Bitcoin-backed loans include Binance, Coinbase, Nexo and Xapo Bank.