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Strike CEO Jack Mallers announced a series of product updates and strategic moves Wednesday, including the launch of lending proof-of-reserves, a new \u201cvolatility-proof\u201d bitcoin-backed loan structure built with Tether, and a $2.1 billion credit facility.\u00a0<\/p>\n
He also said he supports a proposal<\/a> by Tether Investments to merge Strike with Twenty-One Capital and bitcoin miner Elektron Energy.<\/p>\n Mallers said Strike\u2019s<\/a> bitcoin-backed loan and line-of-credit business has grown since launch, with users drawn to the ability to borrow against bitcoin rather than sell it.\u00a0<\/p>\n He described bitcoin as a savings account for many customers and said Strike cut its rate tiers across the board. Pricing now ranges from approximately 10.5% APR for loans under $250,000 to approximately 7.49% APR for loans above $5 million.<\/p>\n Strike announced the first iteration of its lending proof-of-reserves, which gives borrowers the ability to verify that their collateral is present and segregated in a distinct on-chain address.\u00a0<\/p>\n \u201cWe want you to trust us and know that we are who we say we are,\u201d Mallers said. The disclosure mechanism was developed in partnership with Tether, which Mallers<\/a> credited with helping Strike build the transparency infrastructure.<\/p>\n The two companies also jointly developed what Mallers called \u201cvolatility-proof\u201d bitcoin-backed loans, a structure that removes the risk of forced liquidation when bitcoin prices fall or broader markets drop.\u00a0<\/p>\n Mallers said the segregated collateral product is available now through Strike\u2019s private client desk, and the volatility-proof loan feature is available to customers as part of the bitcoin-backed lending suite.<\/p>\n Mallers announced that Strike has secured a $2.1 billion credit facility, which he said gives the company capacity to meet demand at any order size within its lending business.<\/p>\n Earlier Wednesday, Tether Investments published a proposal to merge Twenty-One Capital with Strike and Elektron Energy, a large-scale bitcoin mining operator that manages approximately 50 EH\/s, or roughly 5% of the current Bitcoin network hashrate.\u00a0<\/p>\n Tether said the combined entity would integrate bitcoin treasury holdings, mining, financial services, lending, and capital markets under a single listed platform.<\/p>\n Mallers said he backs the plan. \u201cSimply put, I think it\u2019s a great idea,\u201d he said, adding that building a Bitcoin company \u2014 not a narrow payments app \u2014 was his founding goal. Elektron founder Raphael Zagury has been proposed as President of the combined entity under the plan.<\/p>\n Mallers used a quadrant framework onstage to argue that the Bitcoin industry has a gap at the intersection of high conviction and high operating income.\u00a0<\/p>\nMerger proposal<\/h2>\n
The bitcoin company quadrant and Maller\u2019s vision<\/h2>\n