Strike CEO Jack Mallers announced a $2.1 billion credit facility from Tether (CRYPTO: USDT) to power Bitcoin-backed loans and unveiled volatility-proof loans that prevent liquidations regardless of price swings.

The Volatility-Proof Loan Changes Everything

Mallers revealed Strike’s most requested feature at Bitcoin 2026 in Las Vegas: loans where customers cannot get liquidated no matter what happens to Bitcoin’s (CRYPTO: BTC) price.

Customers told Strike they feared price wicks down and liquidations more than anything else. 

They wanted to pay a fee and guarantee that no one would touch their Bitcoin, regardless of volatility.

Strike built that product in partnership with Tether. The volatility-proof loan rolls out first to private clients who reach out to [email protected], then expands to all customers in the app within weeks or months. 

Strike also lowered loan pricing to as low as 7.49% and now offers Bitcoin-backed loans and lines of credit in almost every U.S. state plus countries across the European Union.

Segregated Collateral Addresses

Strike partnered with Tether to offer segregated collateral addresses for larger loans, allowing customers to verify their Bitcoin sits untouched on the blockchain.

Customers holding 50 Bitcoin or more can request a dedicated address for their collateral and monitor it on the blockchain at any time.

This ensures complete transparency and eliminates any possibility of rehypothecation.

Strike also publishes its first lending proof-of-reserves and has external auditors provide quarterly updates to confirm that customer collateral exists and is not used for other purposes.

The $2.1 Billion Tether Facility

Mallers explained the biggest inhibitor to Bitcoin credit growth has been financing.

Bitcoin-backed loans lack government guarantees, making it difficult to find capital providers willing to fund the space at scale.

“I challenge you guys to try me. Try to give me an order that you don’t think I can fill,” Mallers told the audience. “I promise you, Tether and I can fill that order.”

The $2.1 billion facility provides the scale to meet any demand from Bitcoiners who want liquidity without selling their Bitcoin. 

Jack Mallers said that Strike's Bitcoin credit products are the most successful he has launched in nearly 14 years in the industry.

The 21 Capital Merger Plan

Mallers also announced that 21 Capital’s largest shareholders proposed merging Strike, 21 Capital, and Tether’s Bitcoin mining business Electron into one company.

Electron represents roughly 5% of the current Bitcoin network with 50 exahash across the platform. 

The proposed merger would create what Mallers described as a Bitcoin company focused on four divisions: financial services, Bitcoin infrastructure, capital markets, and mergers and acquisitions.

Mallers emphasized he wants to build something different from crypto casinos or pure Bitcoin treasury companies, combining profitable operating businesses with conviction-driven Bitcoin accumulation on the balance sheet.

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