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

**Published:** 2026-06-11T21:19:39.934Z  
**Topic:** Michael Saylor and Jack Mallers go toe-to-toe over Strategy's bitcoin reporting metrics  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/abdf85dd-6fd6-40d9-b306-c0b08e841cad

Strike CEO Jack Mallers unveils “volatility‑proof” bitcoin loans, a $2.1 billion credit line and supports a Tether‑led merger with mining firm Elektron Energy.

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  

The proof‑of‑reserves and volatility‑proof loan products address two persistent pain points in crypto lending: transparency of collateral and liquidation risk. By offering fixed‑rate financing that protects borrowers from forced sales, Strike aims to attract institutional demand that prefers borrowing against bitcoin holdings instead of liquidating them [2].  

The $2.1 billion credit line signals confidence from capital providers in Strike’s lending model and provides the liquidity needed to scale the business. Meanwhile, the proposed three‑way merger would create a vertically integrated bitcoin platform that combines mining revenue, treasury assets and lending capacity, potentially reshaping how bitcoin‑related financial services are delivered. Execution risks remain, including regulatory approvals and integration challenges, but Mallers’ public support underscores a strategic push toward a more consolidated, high‑conviction, high‑income bitcoin ecosystem [2][3].

## Sources
1. Bitcoinmagazine — [Strike CEO Jack Mallers Announces Lending Proof-of-Reserves ...](https://bitcoinmagazine.com/news/strike-ceo-jack-mallers-bitcoin-conference)
2. Crypticmedia — [Strike Secures $2.1B Credit Facility, Backs Tether's Merger ...](https://crypticmedia.co/strike-secures-2-1b-credit-facility-backs-tethers-merger-with-mining-giant-elektron/)
3. Streamlinecrypto — [Strike CEO Jack Mallers Announces Lending Proof-of-Reserves ...](https://streamlinecrypto.com/strike-ceo-jack-mallers-announces-lending-proof-of-reserves-volatility-proof-loans-and-backs-tether-merger-plan/)

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Cite as: TrendWatcher, "Strike launches proof‑of‑reserves loans and backs Tether‑Elektron", https://www.trendwatcher.in/article/abdf85dd-6fd6-40d9-b306-c0b08e841cad