Strike Launches Volatility-Proof Bitcoin Loans That Cannot Be Liquidated by Price Drops
Every Bitcoin-backed loan product until this week had an invisible third party at the table: the Bitcoin price itself. When Bitcoin dropped sharply, loan-to-value ratios would breach thresholds, triggering margin calls that forced borrowers to either add collateral or watch their stack get liquidated. Strike CEO Jack Mallers described this as the biggest fear his customers kept expressing: what happens if the price wicks down? What if a government headline or stock market crash triggers liquidation overnight?
Strike’s first Bitcoin loan product, launched in May 2025, triggered exactly those fears. During a stretch in which Bitcoin fell 54% from its peak, borrowers faced widespread forced liquidations. The new product, announced July 7, 2026, is a direct response to that experience.
How the New Product Works
The volatility-proof loan removes price-triggered liquidation entirely. Borrowers post Bitcoin as collateral, receive dollars, and make monthly interest payments. No matter how far Bitcoin falls, the collateral does not move. Mallers put it plainly: no margin calls, no price liquidations, no matter how far Bitcoin falls, your Bitcoin does not move.
The protection has a price. The annual percentage rate runs 2.95 percentage points above Strike’s standard loan range of 7.75% to 11.25%, pushing the new product to between 10.7% and 14.2% APR. Terms run six months rather than twelve. The maximum loan-to-value ratio is 45%, meaning a borrower posting $100,000 in Bitcoin can access up to $45,000. The product is backed by a $2.1 billion credit facility built alongside Tether. However, it is currently limited to select US states and excludes California, New York, and Texas.
Why It Matters for Bitcoin Holders in Africa
Strike is available in more than 100 countries, including parts of Africa, the Middle East, and the Americas. The volatility-proof structure matters specifically for long-term Bitcoin holders who want to access liquidity during downturns without selling their position, a use case that maps directly onto how many African Bitcoiners use their holdings as a savings layer against currency devaluation. The catch is that the product currently requires a minimum loan of $5,000 and is not yet expanded to African markets beyond Strike’s standard global footprint. But the direction of travel is clear: Strike expanded its standard Bitcoin-backed loans globally in July 2025, and further expansion of the volatility-proof product will likely follow.