Strike Bets on Tether for Non-Liquidating $BTC Loan, Unveils $2.1 Billion Credit

Strike announced a Bitcoin-backed loan that avoids forced liquidation on price drops, a proof-of-reserves system, and a secured $2.1 billion credit line to scale lending. Developed with Tether, the loan charges 10.5% APR for loans under $250,000 and ~7.49% APR for loans above $5 million. Strike also supports a proposed merger with Tether and Elektron Energy (about 50 EH/s, ~5% of Bitcoin hashrate) to vertically integrate custody, payments, mining and capital markets. Market impact: the non-liquidating loan could reduce sell pressure during drawdowns by giving holders liquidity without selling, the large credit facility enables meaningful lending capacity and securitization plans could create new institutional Bitcoin products, while proof-of-reserves may draw flows from less-transparent lending venues.