Bitcoin Loans • Strike vs. Abra • 2025 Comparison
Bitcoin Loans
Two Ways: Strike vs. Abra Private
Strike
12% APR • 50% LTV • 12-Month Term
Abra Private
5-6% APR • 75% LTV • Open Term
Security
No Rehypothecation • Segregated Accounts
Introduction
Bitcoin holders ("HODLers") often face a dilemma when they need cash: sell a prized Bitcoin stash (and potentially miss out on future gains) or find a way to borrow against it. In 2025, Bitcoin-backed loans have re-emerged as a hot topic, with high-profile figures like Jack Mallers of Strike pushing new borrowing products at major industry events. Meanwhile, veteran crypto company Abra has been quietly offering an alternative lending model to private clients, boasting significantly lower rates and a regulated structure.
This comparison takes a neutral, analytical look at Strike's new Bitcoin-backed borrowing program – as announced by Jack Mallers at the 2025 Bitcoin Conference – versus Abra Private's Bitcoin-collateralized lending product. We'll compare their interest rates, loan terms, collateral practices, and regulatory safeguards, fact-check claims against data, and evaluate the trust and risk models of each platform for Bitcoin maximalists who are loath to part with their coins.
Strike Bitcoin-Backed Borrowing
Product Details
Strike offers 12-month term loans for U.S. customers, with loan sizes ranging from $75,000 up to $2 million. The interest rate is fixed at 12% APR, with no origination fees or prepayment penalties. No credit checks are performed, and loans are not reported to credit bureaus. Borrowers can choose to make monthly interest payments or pay everything at the end of the term.
Collateral & LTV
Loans are overcollateralized with a 50% LTV ratio. Bitcoin collateral is held by vetted third-party institutional lenders, with Strike maintaining legal responsibility. The platform emphasizes no rehypothecation and plans to implement proof-of-reserves auditing. This conservative LTV provides a significant buffer against Bitcoin's price volatility.
Target Users
Focused on high-net-worth and institutional clients, Strike aims to help serious Bitcoin holders unlock value without selling. The platform is currently limited to U.S. customers in certain states, with plans for international expansion. Strike's vision is to make Bitcoin-backed borrowing mainstream as Bitcoin's value potentially climbs.
Trust & Transparency
Strike emphasizes its commitment to transparency and security. The platform plans to implement proof-of-reserves auditing so customers can verify their collateral is accounted for at all times. While not SEC-regulated, Strike maintains legal responsibility for collateral even when using partner lenders, providing an additional layer of security.
Abra Private Bitcoin-Backed Lending
Regulated Structure
Operating through Abra Capital Management, LP, an SEC-registered investment adviser (RIA). This provides regulatory oversight, fiduciary duty, and comprehensive disclosure requirements. Assets are held in segregated accounts via trusted partners like Fireblocks. The RIA status means Abra must meet regulatory approval and operate as a fiduciary, with added layers of disclosure and oversight.
Loan Terms
Offering significantly lower rates (5-6% APR) with open-term loans and no fixed maturity date. LTV ratios up to 75% are available, though this comes with higher liquidation risk. A 2% origination fee applies, but no ongoing account fees beyond interest. The open-term structure provides flexibility for long-term Bitcoin holders.
Security & Transparency
Assets remain under client names in segregated accounts, with on-chain verification available. The RIA structure ensures client assets are protected even in case of company insolvency. Regular SEC examinations and compliance requirements provide additional oversight. Abra's track record includes surviving the 2022 crypto winter without any liquidations.
Track Record
Abra has processed over $1 billion in loans historically and has navigated multiple market cycles. The company's pivot to become an SEC-registered advisor demonstrates its commitment to regulatory compliance and client protection. This experience and regulatory status provide a different kind of trust compared to newer entrants in the space.
Risk Analysis & Trust Considerations
Custodial Risk
Both platforms take different approaches to custody. Abra uses Fireblocks directly with segregated on-chain wallets, while Strike partners with institutional lenders. Abra's RIA status provides additional legal protections, but both platforms avoid rehypothecation and maintain segregated accounts. The key is that neither platform uses your Bitcoin for other purposes.
Margin Call Risk
Strike's 50% LTV provides more safety margin than Abra's 75% LTV. With Abra's higher LTV, a smaller Bitcoin price drop could trigger margin calls. Users should consider their risk tolerance and ability to post additional collateral if needed. Conservative users might choose lower LTV ratios than the maximum allowed.
Regulatory Protection
Abra's SEC registration provides formal oversight and legal protections. Strike relies on voluntary transparency and partner relationships. Neither platform offers FDIC/SIPC insurance on crypto collateral, but Abra's regulated structure provides additional safeguards in case of company issues.
Head-to-Head Comparison
Cost & Terms
Abra offers lower rates (5-6% vs 12%) but charges a 2% origination fee. Strike has no fees but higher interest. Abra's open-term loans provide more flexibility than Strike's 12-month terms. Both platforms avoid rehypothecation and maintain segregated accounts.
Risk & Security
Strike's 50% LTV provides more safety margin than Abra's 75% LTV. Abra's SEC registration offers regulatory oversight, while Strike relies on partner relationships. Both platforms implement strong security measures and transparency practices.
Trust & Track Record
Abra has a longer track record in lending and survived the 2022 crypto winter. Strike brings fresh innovation and Bitcoin-native focus. Both platforms have earned trust in different ways - Abra through regulation and history, Strike through its Bitcoin community presence.