Strike launches ‘volatility-proof’ Bitcoin loans amid bear market, but at a cost
Strike launched a new Bitcoin-backed loan designed to avoid margin calls and forced liquidations during sharp BTC drops. CEO Jack Mallers said the product was built after customer complaints about Strike’s earlier loan product, which led to many liquidations during a 54% Bitcoin decline. The new loan offers a higher initial loan-to-value cap of 45%, but costs more: about 10.7% to 14.2% APR, plus a six-month term. Strike says the extra fee funds hedging to protect borrowers from price swings. The loan is “volatility-proof,” not “liquidation-proof”: borrowers must still pay on time. If a payment is missed, they have 10 days to cure it or contact Strike; otherwise, Strike may sell collateral. The product is available in most U.S. states for personal and business use, with minimums starting at $10,000 for individuals and $5,000 for some businesses.
