Strike launches proof‑of‑reserves loans and backs Tether‑Elektron

Strike CEO Jack Mallers announced a suite of new lending features, a $2.1 billion credit facility, and his backing of a Tether‑proposed merger that would combine Strike with Twenty‑One Capital and miner Elektron Energy [1].

Key takeaways

• Strike introduced “lending proof‑of‑reserves,” letting borrowers verify on‑chain collateral segregation [1].
• The company launched “volatility‑proof” bitcoin‑backed loans that avoid forced liquidation when prices fall [1].
• Tiered loan pricing now ranges from roughly 10.5 % APR for loans under $250 k to about 7.49 % APR for loans above $5 m [1].
• Strike secured a $2.1 billion credit facility to meet any order size in its lending business [1].
• Mallers publicly supports Tether Investments’ proposal to merge Strike, Twenty‑One Capital and Elektron Energy, creating a listed bitcoin‑focused platform [1].

New lending transparency and “volatility‑proof” loans

At the Bitcoin 2026 conference Mallers detailed the first iteration of “lending proof‑of‑reserves,” a mechanism that shows borrowers a distinct on‑chain address where their bitcoin collateral is held and segregated. The disclosure system was built in partnership with Tether, which Mallers credited for helping develop the transparency infrastructure [1].

Alongside the proof‑of‑reserves tool, Strike and Tether co‑created a “volatility‑proof” loan structure. Unlike traditional crypto loans that can trigger liquidation if bitcoin prices drop, this product allows borrowers to keep exposure to bitcoin’s upside while eliminating the risk of forced liquidation during market downturns [1]. The feature is available through Strike’s private‑client desk as part of its broader bitcoin‑backed lending suite [1].

Credit facility and merger proposal

Mallers announced that Strike has secured a $2.1 billion credit facility, which he said gives the company the capacity to satisfy demand at any order size within its lending business [1]. The facility is positioned as institutional‑grade infrastructure for a market where users often sell bitcoin to obtain capital rather than borrowing against it [2].

In parallel, Mallers endorsed a proposal from Tether Investments to merge Strike with Twenty‑One Capital and Elektron Energy, a mining operator that controls roughly 50 EH/s—about 5 % of the Bitcoin network’s total hashrate [1]. The combined entity would integrate bitcoin treasury holdings, mining, financial services, lending and capital‑markets functions under a single listed platform, with Elektron founder Raphael Zagury slated to serve as president [1]. Mallers described the plan as “a great idea” and aligned it with his long‑term goal of building a comprehensive bitcoin company rather than a narrow payments app [1].

Why it matters