Strike’s Bitcoin-Backed Loans Hit $10M in 48 Hours—Bankers Reach for Maalox

Bitcoin doesn’t sleep—and neither do the borrowers. Strike’s collateralized loan product just crossed eight figures faster than a crypto hedge fund blows through LP capital.

No credit checks, no bank queues: just cold, hard BTC unlocking liquidity. The traditional finance crowd will call it reckless... right before launching their own copycat product in Q3.

Funny how ’volatile asset’ concerns vanish when there’s a 12% APR attached.

Bitcoin lending rates are still in double digits: Strike

In a video posted on X, Mallers acknowledged that Strike’s lending rates remain high. The platform currently offers a 12% APR for monthly payments and a 13% APR for payments at maturity, well above traditional lending rates.

Mallers explained that these elevated rates reflect the nascency of the Bitcoin lending market. Major lenders, he said, still don’t fully understand Bitcoin. Nonetheless, he expressed a strong commitment to reducing Strike’s lending rates into the single digits over time.

Despite the current rates, Mallers believes Bitcoin-backed loans remain compelling for certain users, including himself. For example, mortgages require borrowers to own real estate, which typically sees a compound annual growth rate (CAGR) of around 3%. In contrast, Bitcoin has posted a CAGR of 30–50%, making it potentially more advantageous for long-term holders to borrow against BTC rather than sell it.

Mallers also clarified that Strike is not a DeFi company. Instead, it operates as a financial institution that collaborates with other traditional financial partners. He noted that while he was unable to reveal those partners at this time, Strike is positioned to bridge Bitcoin and institutional finance.