Strike has rolled out a new financing product centered on long-term Bitcoin ownership: bitcoin-backed loans. For eligible users in select U.S. states, the service creates a way to borrow cash against BTC holdings without selling the underlying asset. That matters because many bitcoin holders do not want to exit their positions simply to meet short-term liquidity needs. Instead of choosing between keeping exposure to bitcoin and raising cash, they can now attempt to do both through a collateralized loan structure.
At a practical level, this product brings a familiar traditional finance tool into the Bitcoin ecosystem. Real estate owners and stock investors have long been able to borrow against assets they prefer not to sell. Strike is applying the same logic to BTC. For users who believe bitcoin may continue appreciating over time, avoiding a sale can be just as important as gaining access to cash. It also means users may avoid realizing gains through disposal of the asset, which can be relevant from a tax standpoint.
Loan size, pricing, and who the product is for
For individual borrowers, Strike says loan amounts range from $75,000 to $2,000,000. Loan terms can run for as long as 12 months, and interest rates start at 12% APR. Strike also highlights that these loans come with no origination fees, a detail that could make the offering more attractive when compared with many conventional lending products that include additional upfront costs.
Strike is not limiting the service to retail users. It is also launching bitcoin-backed loans for businesses, with borrowing amounts ranging from $10,000 to $2,000,000. According to the company, business borrowers will receive the same competitive rates, flexible terms, and straightforward application experience. For small and medium-sized businesses that already hold BTC on their balance sheets, this could open a path to working capital without requiring liquidation of strategic bitcoin reserves.
The target audience is fairly clear. One segment consists of long-term bitcoin holders who may need near-term liquidity for personal expenses, tax planning, investment timing, or other cash-flow reasons. The second consists of business owners who treat bitcoin as a treasury asset but still need operating capital. In both cases, Strike is positioning BTC not only as a store of value or payment asset, but also as collateral that can support broader financial planning.
Why Strike sees demand from long-term holders
Strike connects the launch to a wider market pattern among bitcoin holders. Citing blockchain data from April 2025, the company notes that 63% of bitcoin supply had not moved in more than one year. That figure is often interpreted as a sign of strong long-term conviction. In other words, a large portion of supply appears to be sitting with holders who are not actively trading and are instead willing to wait through market cycles.
Strike adds another data point from inside its own ecosystem: more than 90% of the bitcoin purchased on Strike is withdrawn to cold storage. That behavior suggests users on the platform generally view bitcoin as a long-term holding rather than a short-term speculative position. If customers are routinely moving BTC off-platform into cold wallets, it signals intent to self-custody and hold rather than frequently rotate in and out of the market.
This context helps explain the logic behind the product. Many bitcoin holders do not want to sell because BTC has a history of strong long-term performance, and selling would reduce their future upside exposure. A loan secured by bitcoin gives them another route. Instead of liquidating the asset, they can temporarily unlock value from it. That framing is central to Strike’s pitch: liquidity without surrendering long-term conviction.
Repayment flexibility, LTV management, and liquidation risk
Strike says borrowers will have flexible repayment choices. They can make monthly repayments or wait until maturity and repay in a lump sum. That distinction matters because not all borrowers manage cash flow in the same way. Some may prefer predictable monthly servicing, while others may want to align repayment with an expected future liquidity event, business receivable, or portfolio rebalancing point.
The company also says users can manage their loan-to-value ratio, or LTV, by posting additional collateral if needed. In crypto-backed lending, LTV is one of the most important variables because the value of the collateral can move quickly. If bitcoin falls sharply, a borrower’s collateral ratio can deteriorate, increasing the odds of forced liquidation. By allowing additional BTC to be posted, Strike gives borrowers a mechanism to actively stabilize the position.
This feature is especially relevant in volatile market conditions. Bitcoin can move materially over short periods, and collateralized loan products always expose users to that market risk. The ability to add more collateral does not remove the risk, but it can reduce the chance of liquidation by lowering LTV. For experienced bitcoin holders, that creates an additional layer of control over how the loan is managed during drawdowns.
How the borrowing process works inside Strike
Strike describes the process as simple and secure. A borrower posts bitcoin as collateral, receives cash in an account, and then manages the loan entirely through the Strike app. Once the full principal has been repaid, along with any accrued interest, the pledged bitcoin is returned to the user. This app-based workflow is meant to remove much of the friction usually associated with asset-backed borrowing.
One of the major selling points is what the process avoids. Strike says there are no credit checks and no long approval procedures. That is a notable departure from many traditional lending channels, where underwriting often depends on credit history, income verification, or extended manual review. Here, the primary consideration is the bitcoin collateral itself rather than a conventional consumer credit profile.
Strike also points out that borrowers do not trigger taxable events associated with selling assets, because they are not disposing of their BTC to raise cash. For long-term holders, that can be meaningful. Even so, the trade-off is that the bitcoin is encumbered as collateral during the life of the loan, so borrowers still need to evaluate risk carefully, particularly in relation to market volatility and collateral management.
Strike’s broader goal: expanding Bitcoin’s financial utility
Beyond the immediate product launch, Strike appears to be making a broader statement about what Bitcoin can do inside modern finance. Traditionally, tools such as collateralized lending have been associated with assets like real estate and publicly traded equities. By extending a similar framework to BTC, Strike is arguing that bitcoin can participate in a more complete financial stack, not just as something to buy, hold, or transfer.
To support the service, Strike says it has partnered with vetted third-party capital providers. Those partners are intended to help ensure secure custody arrangements and smooth loan execution. That detail suggests the product relies on a collaborative infrastructure model, where Strike serves as the user-facing platform while external capital and operational partners help power settlement, collateral handling, and funding flows behind the scenes.
Overall, the new service is designed around a simple but important user need: many people want cash without giving up their BTC. Strike’s bitcoin-backed loan offering attempts to meet that need for eligible individuals and businesses in select U.S. states. If the product gains adoption, it could mark another step in turning bitcoin from a passive long-term holding into an asset with broader day-to-day financial utility.