Strike launches bitcoin-backed loans without margin calls or liquidations

Strike has launched what it calls a “volatility-proof” bitcoin-backed loan designed to eliminate margin calls and forced liquidations tied solely to Bitcoin price declines, shifting the main risk trigger to missed payments instead. The product follows Strike’s first bitcoin-backed loan launch in May 2025, after which the company said it issued more than $10 million in BTC-backed loans within two days. The new loan has a maximum initial loan-to-value ratio of 45%, a six-month term and an annual percentage rate that runs 2.95 percentage points above Strike’s standard bitcoin loan product, implying rates of as much as 14.2% based on the standard 7.75% to 11.25% range. Borrowers who pledge $100,000 in Bitcoin can borrow up to $45,000 under the product’s maximum LTV. The new structure can be used for new borrowing, refinancing an existing loan or consolidating multiple loans, but cannot be switched into mid-term. Strike’s standard bitcoin loans warn borrowers at 65% LTV, trigger margin calls at 70% and begin partial liquidations at 85%. By contrast, the volatility-proof structure keeps collateral in place regardless of price declines as long as payments continue. The product does not make the loans liquidation-proof: borrowers who miss an interest or maturity payment have 10 days to catch up, after which Bitcoin may be sold to cover overdue amounts. Strike’s current terms limit the product to fixed-term loans in select U.S. states and exclude California, New York and Texas. The launch comes as crypto lenders try to address a longstanding obstacle to adoption: the risk that sudden price drops in collateral can trigger forced selling. Strike is building the product alongside a $2.1 billion credit facility and a Tether partnership that supports segregated, onchain collateral tracking. The rollout arrives with bitcoin trading under $62,000 during a broader bear-market stretch that has kept pressure on holders since last year’s peak.