Strike launches bitcoin loans that prevent price liquidations

Strike has launched bitcoin-backed term loans in select U.S. states that prevent automatic, price-triggered liquidations so long as borrowers keep scheduled payments current. The company may partially liquidate collateral only after a missed interest or maturity payment that is not cured within a 10-day grace period.

Founder and CEO Jack Mallers wrote on X that the product removes automatic margin calls tied to loan-to-value ratios and keeps pledged bitcoin “untouched” while payments are on time. “No margin calls. No price liquidations. No matter how far bitcoin falls, your bitcoin doesn't move,” he wrote.

The offering applies to term loans rather than revolving lines of credit and is available only where Strike has regulatory clearance. Under the program, Strike will not execute price-triggered actions that automatically force sales of collateral when bitcoin’s market price drops. If a borrower misses a required payment, the company provides a 10-day period to cure the default before any partial liquidation to cover the missed amount.

Strike introduced the loans amid recent swings in bitcoin’s price. After weeks of volatility and declines, bitcoin recovered some ground and traded near $63,000 in recent days.

Strike’s broader platform supports buying and selling bitcoin via bank transfers, debit cards and wire transfers, and offers automated recurring purchases and price-triggered orders. The company also provides tools to convert a portion of direct-deposited paychecks into bitcoin and to pay bills using the cryptocurrency.

The loan terms tie collateral treatment to borrower payment performance rather than to market price movements. The company did not extend the same non-liquidation terms to lines of credit.