Strike launches bitcoin-backed loans, allowing borrowers to avoid forced liquidation with continuous repayments

According to The Block, Jack Mallers' Strike has launched a new Bitcoin-backed loan product, allowing borrowers to avoid forced liquidation regardless of how low the Bitcoin price falls, as long as they keep making payments. Strike founder Mallers stated: "No margin calls, no price-triggered liquidations—no matter how much Bitcoin drops, your Bitcoin won't be moved." This product eliminates price trigger mechanisms linked to loan-to-value ratios. If the borrower misses an interest or maturity payment and does not pay within the 10-day grace period, the collateral may be partially liquidated. The loan is available as a term loan in certain U.S. states and does not yet support credit lines.