Strike CEO Jack Mallers announced a series of product updates and strategic moves on Wednesday, including the launch of Proof of Lending Reserves, a new “volatility-resistant” bitcoin-backed loan structure created using Tether, and a $2.1 billion credit facility.
He also said he supports A.J an offer Tether Investments has merged Strike with Twenty-One Capital and Bitcoin mining company Elektron Energy.
Muellers said Strike Its bitcoin-backed loan and line of credit businesses have grown since its launch, with users drawn to the ability to borrow against bitcoin rather than sell it.
He described Bitcoin as a savings account for many customers, and said Strike has lowered its price levels across the board. Pricing now ranges from about 10.5% APR for loans under $250,000 to about 7.49% APR for loans over $5 million.
Strike announced the first iteration of Proof of Lending Reserves, which gives borrowers the ability to verify the existence of their collateral and segregate it into a distinct on-chain address.
“We want you to trust us and know that we are who we say we are,” Mallers said. The disclosure mechanism was developed in partnership with Tether, which Mullers He is credited with helping Strike build its transparency infrastructure.
The two companies also jointly developed what Mahler called “volatility-resistant” bitcoin-backed loans, a structure that eliminates the risk of forced liquidation when bitcoin prices decline or broader markets fall.
The separate collateral product is now available through Strike’s client desk, and the volatility-resistant loan feature is available to clients as part of its bitcoin-backed lending suite, Mallers said.
Mallers announced that Strike has secured a $2.1 billion credit facility, which he said gives the company the ability to meet demand of any order size within its lending business.
Merger proposal
Earlier on Wednesday, Tether Investments published a proposal to merge Twenty-One Capital with Strike and Elektron Energy, a large-scale Bitcoin miner that operates approximately 50 EH/s, or roughly 5% of the current Bitcoin network hash rate.
Tether said the combined entity will combine its bitcoin treasury, mining, financial services, lending and capital markets holdings under one listed platform.
Mallers said he supports the plan. “Simply put, I think it’s a great idea,” he said, adding that building a bitcoin company — not a narrow payments app — was his founding goal. Elektron founder Rafael Zagori has been proposed as president of the merged entity under the plan.
The Bitcoin Company Quadrant and Mahler’s Vision
Mallers used a four-way framework on stage to argue that the Bitcoin industry has a gap at the intersection of high conviction and high operating income.
He put it Crypto exchanges In the high and low persuasion corner, saying they run a profitable business but list multiple coins and make products across asset classes. He put Bitcoin treasury companies in the high-condemnation, low-revenue corner, describing them as deeply committed to Bitcoin but limited in scope of operating business.
He cited Coinbase as an exchange that could hold more Bitcoin on its balance sheet, and praised MicroStrategy CEO Michael Saylor while distinguishing between a treasury strategy and a product strategy. “I love him and his company, but I want to make Bitcoin products,” Mallers said of Saylor.
Its answer to this gap was a four-pillar model: a financial services arm covering brokerage, custody, lending, payments, treasury and core services; Bitcoin infrastructure including energy, power generation, mining, hardware, and hosting; and capital markets operations centered around securitization of loan books, securitization of mining revenues, bitcoin-backed debt, and structured products; and an M&A function targeting profitable Bitcoin companies across software, custody, payments, energy and distribution.
The M&A department’s stated goal, as explained on his slide, is to give “every dollar of operating income one function: to buy more bitcoin.”
Mullers concluded by saying that a platform of this scale could “change the world with its products,” and cited a phrase he has used throughout his career: “Fix the money, fix the world.”
