Strike launched a bitcoin-backed loan product on July 7 branded as volatility-proof loans, eliminating price-triggered liquidations for the duration of the loan. The product removes the 65% LTV warning threshold and 70% liquidation trigger that are standard in most crypto lending products, positioning Strike as a provider willing to absorb collateral volatility risk rather than passing it to the borrower.
This is a direct competitive challenge to Armada's crypto repo desk. Family office and miner counterparties evaluating BTC-backed financing will now compare Armada's LTV thresholds and margin call mechanics directly against Strike's no-liquidation promise. Armada must clearly articulate its risk management rationale, the structural protections provided by Fireblocks custody and the no-rehypothecation policy, and why institutional-grade repo documentation offers stronger counterparty protections than a retail-facing loan product absent of liquidation triggers.