Breaking: Strike CEO Jack Mallers Unveils Major Lending Upgrades and Merger Support
Strike CEO Jack Mallers announced Wednesday a suite of product updates including lending proof-of-reserves, a new “volatility-proof” bitcoin-backed loan structure developed with Tether, and a $2.1 billion credit facility. He also publicly backed a proposal by Tether Investments to merge Strike with Twenty-One Capital and bitcoin miner Elektron Energy.
The announcement, made at a live event, signals a dramatic expansion of Strike’s lending business and a strategic alignment with Tether, the largest stablecoin issuer. Mallers described the moves as steps toward building a comprehensive Bitcoin financial platform.
Proof-of-Reserves for Lending
Strike’s first iteration of lending proof-of-reserves allows borrowers to verify that their collateral is held in a segregated on-chain address. “We want you to trust us and know that we are who we say we are,” Mallers said, emphasizing transparency.
The mechanism was built in partnership with Tether, which helped create the infrastructure for real-time verification. This feature is now available through Strike’s private client desk, giving institutional and high-net-worth borrowers direct visibility into their collateral.
‘Volatility-Proof’ Bitcoin Loans
Mallers also unveiled what he called “volatility-proof” bitcoin-backed loans, a structure jointly developed with Tether. The product eliminates forced liquidation risk even during sharp bitcoin price declines or broader market downturns.
“This is a game-changer for borrowers who want to hold bitcoin long-term without fear of margin calls,” Mallers said. The feature is integrated into Strike’s bitcoin-backed lending suite, which has already seen growing demand since its launch.
$2.1 Billion Credit Facility
To support the lending expansion, Strike secured a $2.1 billion credit facility. Mallers said the facility gives the company capacity to meet demand at any order size, ensuring liquidity for large-scale loans.
“We’re ready to serve borrowers from retail to institutions,” he noted. The pricing tiers range from approximately 10.5% APR for loans under $250,000 to around 7.49% APR for loans exceeding $5 million.
Background
Strike’s bitcoin-backed loan and line-of-credit business has grown steadily since launch, with users preferring to borrow against bitcoin rather than sell it. Mallers described bitcoin as a savings account for many customers, prompting Strike to cut rate tiers across the board.
Earlier Wednesday, Tether Investments published a proposal to merge Twenty-One Capital with Strike and Elektron Energy, a large-scale bitcoin miner managing approximately 50 EH/s—roughly 5% of the Bitcoin network hashrate. The combined entity would integrate treasury holdings, mining, financial services, lending, and capital markets under a single listed platform, according to Tether.
Mallers said he backs the plan. “Simply put, I think it’s a great idea,” he stated, adding that building a Bitcoin company—not just a payments app—was his founding goal. Elektron founder Raphael Zagury has been proposed as President of the combined entity.
What This Means
The proof-of-reserves feature addresses a long-standing trust gap in bitcoin lending, where borrowers often rely on opaque audit claims. By enabling on-chain verification, Strike sets a new standard for transparency in the industry.
The volatility-proof loan structure could attract risk-averse bitcoin holders who previously avoided lending due to liquidation risks. Combined with the $2.1 billion credit facility, Strike positions itself as a dominant player in a market currently dominated by centralized and decentralized lenders.
If the merger proceeds, the combined entity would create a vertically integrated Bitcoin powerhouse spanning mining, lending, and capital markets. Tether’s deep pockets and Strike’s retail reach could accelerate adoption of bitcoin-backed financial products.
Industry analysts view the announcements as a strategic pivot. “Strike is moving beyond payments to become a full-spectrum Bitcoin financial services company,” said one anonymous expert, noting that the merger proposal signals consolidation in the sector.
Key Takeaways
- Proof-of-reserves goes live for lending, enabling on-chain verification of collateral segregation.
- ‘Volatility-proof’ loans eliminate forced liquidations, jointly developed with Tether.
- $2.1 billion credit facility ensures scalability for large loans.
- Merger proposal merges Strike, Twenty-One Capital, and Elektron Energy into a listed Bitcoin platform.
Mallers concluded his presentation with a quadrant framework, arguing that the Bitcoin industry has a gap at the intersection of high conviction and high operating income—a gap Strike aims to fill. The full suite of lending products is available now, with the merger subject to board and regulatory approvals.
This is a developing story. Check back for updates.