Coin Stories
Jack Mallers: Borrowing Against Your Bitcoin, Full Scoop on Twenty One Capital & Bitcoin Treasury Company Competition
May 13, 2025
Jack Mallers, co-founder and CEO of Twenty One Capital and Strike, dives into the future of Bitcoin lending and treasury innovation. He unveils Strike’s game-changing Bitcoin-backed lending product that allows users to borrow without selling their crypto. Mallers discusses the importance of transparency and ethical management in Bitcoin finance. He also highlights the rise of Bitcoin banks and the implications of Bitcoin as a neutral reserve asset in a weakening dollar environment, aiming to reshape how institutions think about treasury strategies.
47:02
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Quick takeaways
- The new Bitcoin-backed lending product allows users to borrow cash without selling their Bitcoin, supporting financial flexibility while avoiding taxable events.
- Twenty One Capital aims to enhance Bitcoin's credibility in capital markets, fostering transparency and education on innovative treasury strategies for companies.
Deep dives
Introduction of Bitcoin-Backed Lending
A new lending product allows users to borrow cash against their Bitcoin holdings without having to sell the asset. By using Bitcoin as collateral, individuals can access funds immediately, starting at a loan-to-value (LTV) ratio of 50%. This innovative service enables customers to finance significant expenses like home purchases or medical emergencies while still retaining their Bitcoin investments, thus avoiding a taxable event. The appeal of this lending model lies in its design, as it provides a unique way to access accumulated wealth in Bitcoin without relinquishing ownership.
