Strike Introduces Bitcoin-Backed Loans Without Liquidation

Strike has unveiled a new type of Bitcoin-backed loan designed to avoid margin calls and forced liquidations. Borrowers can retain their BTC as long as they make their repayments on time. These loans are aimed at long-term investors who need cash without having to sell their Bitcoin. At the Bitcoin 2026 conference, CEO Jack Mallers announced the "volatility-secure" loans developed in collaboration with Tether. Customers cannot be liquidated as long as they accept a special structure and fee. The loans can withstand an 80% price drop in BTC without liquidating the holdings, provided payments are made. Strike has entered into a $2.1 billion loan agreement with Tether and developed a "Lending Proof-of-Reserves" system that holds collateral in separate on-chain addresses. Larger clients can track their collateral live on the blockchain. The loans will initially be offered through the private client desk and are expected to be available soon for regular app users. The loan-to-value ratio is capped at 50%, and interest rates start at around 7.49% for larger loans. For retail customers, interest rates range from 8% to 11% depending on the amount. Borrowers do not need to sell their BTC, avoiding taxable events and allowing them to benefit from future price increases.