Strike launches Bitcoin-backed loans without margin calls or forced sales during price drops

Strike has introduced a new Bitcoin-collateralized loan product that protects borrowers from margin calls and automatic liquidation even if Bitcoin's price falls significantly, as long as payments are made on time. The loans carry higher interest rates of 10.7% to 14.2% annually, reflecting the cost of market hedging to manage risk. Borrowers get a 10-day grace period after missed payments before collateral can be sold. This product aims to reduce panic selling and is available across most US states for individuals and businesses with minimum loan amounts of $10,000 and $5,000 respectively.