Jack Mallers wants Bitcoin holders to stop selling their coins. His solution: let them borrow against those coins instead, with a loan structure that won’t blow up their position when the market dips.

The Strike CEO took the stage at Bitcoin 2026 on April 29 to announce a revamped lending framework built in partnership with Tether, headlined by a $2.1 billion credit facility and what the company calls “volatility-proof” loans. The core pitch is straightforward. Holders can access cash without triggering a taxable event or parting with their Bitcoin, and they won’t face the dreaded margin call that has historically wrecked crypto borrowers during downturns.

How the loans actually work

Strike’s new structure takes a different approach. Borrowers can pay a fee to eliminate the risk of forced liquidations during price drops.

The loans carry a maximum loan-to-value ratio of 50%, meaning you can borrow up to half the value of the Bitcoin you put up as collateral. Rates start at 7.49% APR. Minimum loan amounts range from $10,000 to $100,000 depending on jurisdiction.

These aren’t entirely new products. Strike first rolled out Bitcoin-backed loans and lines of credit to eligible US customers and select EU countries in mid-2025. What changed at Bitcoin 2026 is the scale, the Tether partnership, and the structural innovation around liquidation protection.

Mallers also announced that Strike will implement a lending proof-of-reserves reporting mechanism, with quarterly audits planned going forward.

The Tether connection runs deep

The $2.1 billion credit facility from Tether is the financial backbone of this expansion. The announcements coincide with Tether’s proposal for a merger that would integrate Strike with Twenty One Capital and Elektron Energy. The goal is to create an integrated Bitcoin treasury and financial services ecosystem, combining mining operations with lending and payments under a broader corporate umbrella.

Why this matters for Bitcoin holders and investors

Mallers has long been an evangelist for the “never sell your Bitcoin” ethos, and these lending products are the financial expression of that belief. If holders can tap liquidity through borrowing rather than selling, it theoretically reduces sell pressure on Bitcoin’s spot market.

But the risks are worth thinking about clearly. A 50% LTV ratio provides a reasonable buffer, but it doesn’t make these loans risk-free. If Bitcoin’s price were to drop more than 50% from the point of borrowing, the math gets uncomfortable regardless of liquidation protections. Borrowers still owe the money. The fee structure for volatility protection also deserves scrutiny, since the cost of that insurance directly impacts whether borrowing is actually cheaper than simply selling a small portion of holdings.

The crypto lending sector has a troubled history. Celsius, Voyager, and BlockFi all offered attractive rates before collapsing and taking customer funds with them. Strike’s move toward proof-of-reserves and quarterly audits is a direct response to that legacy.