Jack Mallers' Strike Cuts Bitcoin Loan Terms to 6 Months to Kill Price Liquidations
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. Key TakeawaysJack Mallers launched Strike’s. . .
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. Key TakeawaysJack Mallers launched Strike’s volatility-proof bitcoin loans on July 7, 2026. Volatility-proof loans cap LTV at 45% and carry a roughly 2. 95% rate premium. The product excludes California, New York and Texas under Strike’s current terms. The product, called volatility-proof loans, lets borrowers keep theirbitcoinin place no matter how far the price falls, as long as they keep making payments. Mallers posted theannouncementon X:“No margin calls. No price liquidations. No matter how farbitcoinfalls, yourbitcoindoesn’t move. ”Strike’s standardbitcoinloans, launched in May 2025, work like mostcryptolending products. Borrowers postBTCas collateral and receive USD without selling. But as the loan-to-value ratio climbs during a price drop, warnings hit at 65%, margin calls hit at 70%, and partial liquidations kick in at 85%. Mallers Points to Customer FearMallers described the concern at theBitcoin2026 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 aliquidation. He called it their biggest fear. The new loans respond directly to that feedback. Borrowers can originate a new loan, refinance an existing one, or consolidate multiple loans into a volatility-proof structure. There is no option to switch mid-term. What Changes, and What It CostsThe trade-offs are specific. Volatility-proof loans cap initial LTV at 45%, compared to 50% on the standard product. Terms run six months instead of twelve. Interest rates carry roughly a 2. 95% premium, pushing rates to a range of about 10. 44% to 14. 2%APR. Borrowers also lose the option to retrieve collateral mid-term. A borrower posting $100,000 inbitcoincan access up to $45,000, compared to $50,000 on the standard loan. Price protection has a limit. If a borrower misses an interest payment or fails to repay at maturity, a 10-day grace period applies. After that, Strike can sell part of the collateral to cover what is owed. Mallers made the distinction clear on X: “That’s why we call it ‘volatility-proof,’ not ‘liquidation-proof. '”Repayment Risk Replaces Price RiskStrike’s own account framed the shift plainly: “Everybitcoinloan before this had an invisible party at the table: thebitcoinprice itself. ” Removing that party does not remove risk. It shifts the risk from market movement to cash flow. A borrower who cannot make payments still faces a forced sale. The product is limited to fixed-term loans in select U. S. states, and it excludes several major markets, including California, New York, and Texas, according to Strike’scurrent FAQ. What This Means for TradersFor long-termbitcoinholders, the appeal is straightforward. They can borrow against their stack during a downturn without watching an LTV dashboard. The cost is a shorter term, less borrowing power, and a higher rate. 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 asbitcointrades under $62,000, in the middle of abear marketphase that has tested holders’ patience since last year’s peak.