Borrow against your Bitcoin

Jack Mallers unveils Strike’s no-rehypothecation Bitcoin lending product and explains how his new company 21 aims to take Bitcoin financial services mainstream—with a $2 trillion asset class in sight.

Strike CEO Jack Mallers believes Bitcoin shouldn't be exclusive—and he's acting on that belief. In a recent interview, he broke down two major moves: a new lending product at Strike and the launch of a separate public company, 21, that aims to bring Bitcoin to traditional capital markets in a serious way.

Strike Lending now lets users borrow against their Bitcoin at a 50% loan-to-value ratio, starting at 12% APR. There are two loan structures: pay interest monthly or opt for "payment at maturity," where you pay everything at the end of the term at 13% APR. Most importantly, Strike does not rehypothecate customer Bitcoin, meaning collateral is never reused for other purposes—a strong response to concerns after past industry failures. Mallers emphasizes that the product is for people who want liquidity without selling Bitcoin and incurring capital gains taxes. Customers have already used loans for everything from medical emergencies to stacking more BTC.

While 12% may seem high compared to traditional options, Mallers says that’s due to the immaturity of Bitcoin lending markets. The goal is to bring rates down over time, ideally to single digits, as capital providers better understand Bitcoin’s strength as collateral.

Then there's 21, Mallers’ new company co-founded with Tether. 21 plans to go public under ticker XXI through a SPAC merger with Caner Equity Partners. With over 42,000 BTC in treasury, 21 is positioning itself as a “pure-play” Bitcoin company that offers not just exposure but also Bitcoin-native business models—like financial services and lending.

Mallers made it clear: Strike and 21 are separate companies, though both align with his lifelong mission to push Bitcoin forward. 21 will focus on building Bitcoin-native revenue streams, unlike other treasury-heavy companies that rely on legacy business models. He believes the market wants a Bitcoin-focused company that’s large enough to matter but still early-stage enough to grow.

As for critics wary of institutional involvement, Mallers argues Bitcoin is open to everyone—even BlackRock. The protocol doesn’t discriminate, and trying to exclude others runs counter to its ethos. In fact, he sees increasing institutional participation as a natural evolution—and one that will ultimately benefit everyone.

On the macro side, Mallers believes we’re unwinding a century-old monetary regime and that Bitcoin is poised to benefit from fiat instability, particularly as governments continue to print and financial institutions demand more leverage to stay afloat.