Strike CEO Jack Mallers Unveils Bitcoin Lending Innovations and Endorses $2.1B Merger Plan with Tether
In a major product launch Wednesday, Strike CEO Jack Mallers announced a new lending proof-of-reserves system, a volatility-proof bitcoin-backed loan structure developed with Tether, and a $2.1 billion credit facility. Mallers also publicly supported Tether Investments' proposal to merge Strike with Twenty-One Capital and bitcoin miner Elektron Energy.
Mallers described the moves as a step toward building a comprehensive Bitcoin company. He emphasized that the new offerings are designed to address key user concerns around transparency and market volatility.
Lending Proof-of-Reserves and Volatility-Proof Loans
Strike launched the first iteration of its lending proof-of-reserves, allowing 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. The system was built in partnership with Tether.
The company also introduced what Mallers called “volatility-proof” bitcoin-backed loans. These loans eliminate the risk of forced liquidation during price drops. Mallers noted, “This structure removes the risk of forced liquidation when bitcoin prices fall or broader markets drop.” The feature is available now through Strike’s private client desk.
Strike’s bitcoin-backed lending business has grown since its launch, with users choosing to borrow against their bitcoin rather than sell it. Mallers described bitcoin as “a savings account for many customers.” The company cut its rate tiers: loans under $250,000 now carry an APR of approximately 10.5%, while loans above $5 million offer an APR of around 7.49%.
$2.1 Billion Credit Facility
Mallers also announced that Strike has secured a $2.1 billion credit facility. He said the facility gives the company “capacity to meet demand at any order size within its lending business.”
Merger Proposal Backed by Mallers
Earlier Wednesday, Tether Investments published a proposal to merge Twenty-One Capital with Strike and Elektron Energy, a large-scale mining operator managing approximately 50 EH/s (about 5% of Bitcoin’s network hashrate). The combined entity would integrate bitcoin treasury holdings, mining, financial services, lending, and capital markets under a single listed platform.
Mallers voiced strong support for the plan. “Simply put, I think it’s a great idea,” he said. He added that building a Bitcoin company—not just a payments app—was his founding goal. Under the proposal, Elektron founder Raphael Zagury would serve as President of the merged entity.
Background
Strike has evolved from a payments app into a broader Bitcoin financial services platform. The company’s lending business allows users to borrow against their bitcoin holdings, offering an alternative to selling during market downturns. Mallers has long advocated for Bitcoin as a savings technology.
Tether, the issuer of the USDT stablecoin, has been expanding its footprint in the Bitcoin ecosystem. The merger proposal with Twenty-One Capital and Elektron Energy signals a push to create a vertically integrated Bitcoin enterprise. Elektron’s 50 EH/s mining capacity makes it a significant player in the industry.
What This Means
For the crypto lending market, Strike’s volatility-proof loans could set a new standard. By removing liquidation risk, these products may attract more conservative borrowers and institutional capital. The proof-of-reserves feature addresses longstanding trust issues following the collapse of centralized lenders in 2022.
If the merger proceeds, the combined entity would rival major public Bitcoin companies like MicroStrategy and Marathon Digital. Mallers’ endorsement suggests he sees this as a path to scale Strike beyond its current offerings. The $2.1 billion credit facility provides the liquidity needed to support aggressive growth in lending and other services.
However, regulatory scrutiny remains a factor. Tether’s involvement brings attention to stablecoin oversight. Mallers expressed confidence, stating the merger and product updates align with building transparent, reliable Bitcoin infrastructure.