Strike launches volatility proof Bitcoin loan product

Bitcoin financial services firm Strike has launched a new loan product designed to allow borrowers to use their bitcoin holdings as collateral without facing forced liquidation due to price volatility. Announced by CEO Jack Mallers on Tuesday, July 7, the "volatility-proof" loan eliminates margin calls and automatic sell-offs triggered by a falling bitcoin price, provided borrowers remain current on their payments.

The core innovation shifts the risk from market price movements to borrower payment behavior. Under the new structure, a borrower's collateral will not be sold if the price of bitcoin drops, even sharply. However, missed interest or principal payments trigger a 10-day grace period, after which Strike may begin liquidating collateral to cover the overdue amount. Mallers emphasized this distinction, stating the product is "volatility-proof, not liquidation-proof."

This launch responds directly to a persistent challenge in crypto-backed lending, where sharp market downturns can force borrowers to sell assets at a loss. Mallers cited feedback from customers of Strike's first loan product, launched in May 2025, a period during which bitcoin fell 54% from its peak. The new...