Key Facts
Strike offers Bitcoin-backed loans with competitive interest rates and no origination fees. Their platform is designed for larger loans (minimum $100,000) with a user-friendly mobile app experience and near-instant funding once collateral is posted.
Pros
- 0% origination fee - no upfront costs
- Competitive interest rates (7%-11% APR)
- No early repayment penalties
- Near-instant funding once collateral is posted
- Highly rated mobile app (4.8/5 on App Store)
- Simple USD loan disbursement to Strike balance
Cons
- High minimum loan amount ($100,000)
- Custodial only - Strike holds your BTC collateral
- Full KYC required - not anonymous
- Limited U.S. availability - only in select states
- No insurance coverage for collateral
- No proof of reserves attestation
Detailed Review of Strike Bitcoin Loans
Company Background
Strike is a digital payment platform founded by Jack Mallers that has expanded into Bitcoin-backed lending. The company is primarily known for its innovative Lightning Network integration, allowing users to send and receive Bitcoin and fiat currency payments globally with minimal fees.
Strike's lending service is relatively new compared to some competitors, but benefits from the company's established reputation in the Bitcoin ecosystem and its focus on regulatory compliance within the United States.
Loan Terms and Conditions
Interest Rates and Fees
Strike offers fixed-rate Bitcoin-backed loans with interest rates ranging from 7% to 11% APR, depending on location and account type. A standout feature is the 0% origination fee, making Strike one of the few providers with no upfront costs. There are also no early repayment penalties, giving borrowers flexibility to pay off loans at any time.
Loan Size and Collateral Requirements
Strike focuses on larger loans, with a minimum amount of $100,000 and a maximum of $2,000,000. The platform uses a fixed 50% LTV (Loan-to-Value) ratio, meaning borrowers receive a loan worth half the value of their Bitcoin collateral. This conservative approach provides a buffer against market volatility.
Loan Duration and Repayment
Strike's loans have a fixed term of 12 months. Repayments can be made via the Strike app using either monthly interest payments or full repayment at maturity. Funds can be transferred from a connected bank account via ACH or using the in-app USD balance.
Security and Custody
Strike uses a custodial model, holding borrowers' Bitcoin collateral in its custody. Unlike some competitors, Strike does not provide detailed information about their custody security practices or insurance coverage for collateral. Key aspects include:
- Custodial storage (Strike holds BTC collateral 1:1)
- Standard account security with SMS/app two-factor authentication
- No published proof of reserves attestation
- No explicit insurance coverage for collateral
While Strike has a strong reputation in the Bitcoin space, security-conscious borrowers might prefer providers with more transparent custody arrangements or insurance coverage.
Liquidation Policies
Strike implements a standard liquidation policy to protect against market volatility:
- Margin call triggered at approximately 70% LTV
- Automatic liquidation at approximately 80% LTV
- No additional liquidation fees (collateral is sold only to cover the loan and interest)
The initial 50% LTV provides a substantial buffer against market volatility, requiring approximately a 20% drop in Bitcoin's price before margin calls occur. Borrowers receive notifications via the Strike app when approaching margin call thresholds.
User Experience and Mobile App
Strike's mobile app is one of its strongest features, with high ratings (4.8/5 on the Apple App Store from approximately 22,000 users). The app interface is clean and intuitive, offering:
- Loan application and management
- Real-time collateral value monitoring
- Simple payment processing
- Integration with Strike's other services (payments, Bitcoin purchases)
The loan process through Strike is streamlined, with near-instant funding once collateral is posted. Customer support is available via email (support@strike.me), though the company doesn't offer phone support or live chat options.
How to Get a Loan from Strike
- Create a Strike account and complete KYC verification
- Apply for a loan by selecting your desired loan amount (minimum $100,000)
- Deposit Bitcoin collateral to Strike's provided address (2x the loan value)
- Receive loan funds credited to your Strike USD balance (nearly instant)
- Manage repayments through the Strike app
Strike requires full KYC verification as part of its regulatory compliance approach, so privacy-focused borrowers may prefer other options.
Verdict: Is Strike Right for You?
Strike offers a solid Bitcoin-backed loan option with competitive interest rates and no fees. They're particularly suited for borrowers who:
- Need loans of $100,000 or more
- Prefer a U.S.-regulated service
- Value a simple, app-based user experience
- Want quick access to funds once collateral is posted
- Appreciate no origination fees or early repayment penalties
Borrowers seeking smaller loans, enhanced privacy, non-custodial options, or more transparent security practices might prefer alternatives. Strike's limited availability in select U.S. states also restricts its accessibility compared to some competitors.
Overall rating: 4.2/5
How Strike Compares to Other Providers
| Feature | Strike | Ledn | Unchained Capital |
|---|---|---|---|
| Interest Rate | 7% - 11% APR | 9.9% - 12.5% APR | 10% - 15% APR |
| Minimum Loan | $100,000 | $500 | $150,000 |
| LTV Ratio | 50% (fixed) | 50% (fixed) | 50% (fixed) |
| Custody Type | Custodial | Custodial | 2-of-3 Multisig |
| KYC Required | Yes | Yes | Yes |
| Insurance | No | Yes ($100M) | No explicit insurance |
| Mobile App | Yes (iOS & Android) | Yes (iOS & Android) | No |
| Origination Fee | 0% | 2% (often waived) | 2% |
Compared to other providers, Strike stands out for its competitive interest rates and zero origination fees. However, its high minimum loan amount makes it less accessible than Ledn for smaller borrowers. Strike's custody model is similar to Ledn's but lacks the insurance coverage, while Unchained Capital offers more security through its multisig approach but at higher interest rates.