Bitcoin Financing Firm Strike Introduces Loans Backed by Bitcoin Assets
Blockchain Bulletin
Cryptocurrency enthusiasts, listen up! Bitcoin-backed loans have arrived, thanks to payment app Strike. Right off the bat, their CEO Jack Mallers announced this exciting expansion on May 6, 2025.
So, what does this mean for you? If you're one of the lucky U.S. residents in 26 selected states, you'll soon be able to snag a quick loan backed by your Bitcoin stash. The amount varies, starting at $75,000, with higher amounts available up to a whopping $2 million [2][4].
But here's the real kicker — Strike's minting these cash loans with an impressive APR of at least 12% [2][4]. And here's the cherry on top: no origination fees, making it a pretty competitive option compared to traditional lending.
Now, let’s address the 'how' part. You'll transfer your Bitcoin collateral to a trusty third-party custodian while Strike keeps the legal reins. Plus, you won't find this loan popping up on your credit report, keeping your credit score secure [4].
Intrigued? Just keep in mind that you'll have up to a year to pay back your loan, making monthly installments doable or opting for a lump-sum payoff at the end of the term [4][5].
Tech-savvy Jack Mallers also feels your pain. "You shouldn't have to sell the best-performing asset in human history to access cash," he says. With this service, you'll keep your Bitcoin while getting a cash injection [1].
Strike itself is a digital payment company, catering to the Bitcoin blockchain. Mallers isn't just the mastermind behind Strike, he's also leading the charge for Twenty One, a new Bitcoin treasury endeavor. Tether, Bitfinex, Cantor Fitzgerald, and SoftBank are backing this cryptocurrency power player [1].
Fun fact: Strike partnered with El Salvador for its Bitcoin project, helping set up the necessary infrastructure for citizens to spend their digital coins.
El Salvadoreans and their beloved Bitcoin have been through some trials. Way back in 2021, El Salvador became the first nation to legalize Bitcoin as tender. However, it reversed course after the International Monetary Fund wagged its finger and asked for a policy rollback [3].
But fear not, dear El Salvadoreans! President Nayib Bukele keeps on buying Bitcoin, proving he's a believer to the end [3].
Dive into the world of cryptocurrencies, stay ahead of the curve, and don't forget to safeguard your digital wealth with Strike's Bitcoin-backed loan service.
Crafted by Andrew Hayward
- Cryptocurrency enthusiasts, the advent of Bitcoin-backed loans is here, spearheaded by payment app Strike.
- In the near future, U.S. residents in selected states will have the opportunity to secure quick loans utilizing their Bitcoin holdings, with an initial minimum of $75,000 and a maximum of $2 million available.
- Strike's Bitcoin-backed loans offer a competitive Annual Percentage Rate (APR) starting at 12%, and come with no origination fees.
- To attain these loans, users transfer their Bitcoin collateral to a third-party custodian, while Strike maintains the legal rights, ensuring no impact on credit scores.
- Loan repayment terms extend up to a year, with the option of monthly installments or a lump-sum payoff at the end of the term.
- Jack Mallers, the visionary behind Strike, emphasizes that Bitcoin-backed loans allow users to retain their Bitcoin while accessing necessary cash.
- Beyond Strike, Mallers co-founded Twenty One, a Bitcoin treasury initiative that garnered support from industry giants such as Tether, Bitfinex, Cantor Fitzgerald, and SoftBank.