Strike’s new volatility-proof Bitcoin loans shift price risk from borrowers onto the lender’s capital providers.
Tether supplies the $2.1 billion credit facility behind the program and co-designed the loan structure itself.
A proposed merger would fold Strike, Twenty One Capital, and miner Elektron Energy into one Tether-linked platform.
The combined stack covers every core banking function except the safety net regulated banks carry.
The headline this week belongs to Strike. On July 7 the company launched Bitcoin-backed loans with no margin calls and no price liquidations, promising that collateral stays untouched no matter how far Bitcoin falls, as long as borrowers keep paying. Most coverage stopped there. The more consequential story sits one layer down, with the entity actually carrying the risk. A loan that never liquidates on price means somebody holds undercollateralized debt through every drawdown, and that somebody, directly and indirectly, is Tether. The merger propos
