Mallers, CEO of 21 Capital: Strike to Launch BTC Collateralized Lending Service, with Technological Growth and QE Driving Bitcoin to New Heights

Blockchain Payment Startup Strike CEO Jack Mallers Announces New Bitcoin Lending Services

In an interview this morning on May 14, Strike CEO Jack Mallers stated that Strike has launched a Bitcoin (BTC)-backed lending service. Additionally, his Bitcoin enterprise “Twenty One” is preparing to merge with a SPAC for public listing and has a treasury holding over 42,000 Bitcoins. Mallers also shared product details and provided an in-depth analysis of the changes in the U.S. financial system, global capital structures, and the critical role of Bitcoin. He pointed out, “The growth of blockchain technology coupled with monetary easing policies creates an opportunity for Bitcoin to reach new highs.”

Launch of Strike Lending: Borrowing Bitcoin Without Selling or Being Taxed

Mallers stated that the BTC collateral lending feature launched by Strike allows users to convert their BTC into cash without selling their coins or incurring taxes.

Collateralization starts at 50%.

Two products are offered: one with monthly interest payments (12% APR) and another with a lump-sum payment at maturity (13% APR).

No rehypothecation feature ensures that Bitcoin will not be secretly misappropriated.

Mallers emphasized that this is a way for Bitcoin users to “unlock asset value,” rather than just a method for making purchases or advancing future income.

He also mentioned efforts to reduce interest rates to single digits in the future and to introduce a transparent version of Proof-of-Reserves (POR).

Establishing Twenty One: A Startup Public Company Centered on Bitcoin

Mallers shared the vision for Twenty One:

• Driving two KPIs: Bitcoin per Share and Bitcoin Return Rate.
• Developing financial services with Bitcoin as the core asset and creating native BTC cash flow.
• The shareholder lineup includes Tether and SoftBank of Japan, boasting extensive backgrounds in finance, Web3, and market experience.

The world is currently deconstructing the post-war monetary order, and the U.S. structurally lacks sources of funding.

Macro-Economic Analysis by Mallers

Mallers also analyzed the macroeconomic landscape, with key points as follows:

• The post-war U.S. model is no longer sustainable: The U.S. has used money printing to purchase global physical resources, but this has led to a hollow domestic manufacturing sector and a widening wealth gap.
• BTC will become the future reserve asset: He believes that while the dollar may still be the unit of account, the “true global capital reserve” will gradually shift towards assets like BTC that possess scarcity and decentralization.
• The U.S. is losing overseas buyers and can only rely on domestic banks and hedge funds to support its bond market: With U.S. debt exceeding $36 trillion, traditional buyers like China and Russia are no longer purchasing, forcing the U.S. to rely on high-leverage operations and institutional adjustments to maintain bond market stability.

The Future of Bitcoin: Technology + Monetary Easing = Price Breakthroughs

Mallers summarized the logic behind BTC’s market trends, asserting that:

The current financial structure has entered a de-leveraging critical point, and if the U.S. initiates large-scale money printing again, combined with technological growth, it will create the next surge opportunity for BTC.

He believes BTC’s performance will continue to outperform real estate and gold, becoming a true “global value asset.”

Mallers emphasized, “Bitcoin is for everyone in the world.”

In response to some community insiders criticizing institutional involvement for undermining decentralization, Mallers countered:

“You cannot claim Bitcoin is free while trying to exclude certain individuals. This contradicts the spirit of Bitcoin.”

He hopes everyone understands that Bitcoin’s greatest characteristics are openness and neutrality, allowing participation from individuals, small companies, and asset giants like BlackRock, which is its most revolutionary point.

(Tether-led Twenty One has purchased 4,812 Bitcoins, with CEP once surging to $59 before retreating.)

Risk Warning

Investing in cryptocurrencies carries a high level of risk, with prices potentially fluctuating wildly. You may lose your entire principal. Please assess risks carefully.