Strike Launches New Bitcoin Lending Product with 50% Loan-to-Value Ratio
Jack Mallers, CEO of Strike, is launching initiatives to democratize Bitcoin access. Key developments include:
- Strike Lending: Users can borrow against Bitcoin at a 50% loan-to-value ratio, starting at 12% APR. Options include monthly interest payments or payment at maturity at 13% APR. Notably, Strike does not rehypothecate customer Bitcoin.
- 21: A new public company co-founded with Tether, aiming for a SPAC merger with Caner Equity Partners under ticker XXI. It holds over 42,000 BTC and will focus on Bitcoin-native business models.
- Mallers emphasizes ongoing liquidity without selling Bitcoin to avoid capital gains taxes. The aim is to reduce lending rates as the market matures.
- Critics of institutional involvement are addressed; Mallers states Bitcoin welcomes all participants, including major firms like BlackRock.
- On macroeconomic trends, he believes Bitcoin stands to gain from fiat volatility as governments increase monetary supply.
Mallers' message reinforces that Bitcoin can be utilized actively without liquidation, encouraging wider participation in the ecosystem.