Key Takeaways
- Strike has launched a Bitcoin-backed lending program for users and businesses.
- Loans range from $75,000 to $2 million with 12% minimum APR and no origination fees.
- Strike joins a rebounding market where centralized lenders now hold $9.9 billion in loans.
Strike, the Bitcoin Lightning-powered app founded by Jack Mallers, has launched a lending program that allows individuals and businesses to borrow against their Bitcoin without needing to sell it.
The new service, Strike Lending, is initially rolling out in select U.S. regions and plans to expand internationally.
Program details
Mallers has been promoting the program as a way to access liquidity while holding onto Bitcoin long-term.
He wrote on X:
You shouldn’t have to sell the best-performing asset in human history to access cash.
Loan terms & conditions
Loans range from $75,000 to $2 million with a 12-month term and a minimum interest rate of 12% APR.
Borrowers can either pay monthly or settle the interest and principal at maturity.
There are no origination or early repayment fees.
Collateral & credit impact
According to Strike, collateralized Bitcoin is transferred to a vetted third-party capital provider for the loan’s duration, though Strike remains legally responsible for the assets.
These loans are not reported to credit agencies and don’t affect credit scores.
Market context
The move comes amid a rebound in the crypto lending space.
The sector is still down 43% from its $64.4 billion peak in Q4 2021, according to Galaxy Research, but centralized lenders like Tether, Galaxy, and Ledn now hold a combined $9.9 billion in loans.
With over $34 billion in onchain lending activity on Ethereum alone, Strike joins a crowded but reviving market.
