Key Points
- Research suggests you need approximately 42.39 BTC for a $2 million loan with Strike, based on current Bitcoin prices.
- It seems likely that the loan requires at least $4 million worth of Bitcoin as collateral, with a 50% Loan-to-Value ratio.
- The evidence leans toward the current Bitcoin price being around $94,357.19 per BTC, affecting the exact amount needed.
Direct Answer
Overview
To get a $2 million loan through Strike’s Bitcoin-backed loans, you need enough Bitcoin to cover at least $4 million in value, as the loan terms suggest a maximum initial Loan-to-Value (LTV) ratio of 50%. This means the collateral must be worth twice the loan amount.
Required Bitcoin
Based on the current Bitcoin price of approximately $94,357.19 per BTC (as of April 27, 2025, from a reliable financial source like Yahoo Finance), you would need about 42.39 BTC. This calculation comes from dividing $4 million by the current price per BTC.
Considerations
Keep in mind that Bitcoin prices fluctuate, so the exact amount might vary slightly at the time you apply for the loan. Also, Strike’s platform might use a slightly different price, but this estimate should be close.
Survey Note: Detailed Analysis of Bitcoin Required for a $2 Million Loan with Strike
Jack Mallers’ company, Strike, offers Bitcoin-backed loans as part of its financial services, allowing users to unlock the buying power of their Bitcoin without selling it, using the cryptocurrency as collateral. As of April 27, 2025, the user’s query seeks to determine how much Bitcoin is needed for a $2 million loan through Strike. This section provides a comprehensive analysis, drawing from official FAQs, financial data, and related sources, to address the query in detail.
Background and Context
Strike, operating under Zap Solutions, Inc., has expanded its offerings beyond Bitcoin transactions to include financial products like Bitcoin-backed loans. These loans are designed to provide users with access to cash while maintaining their Bitcoin holdings, appealing to those who believe in Bitcoin’s long-term value. The company’s focus on financial inclusion, particularly highlighted by its role in El Salvador’s Bitcoin adoption, aligns with offering such loans to underserved markets.
Loan Terms and LTV Ratio
Strike’s Bitcoin-backed loans have specific terms, as outlined in their FAQs. The maximum initial Loan-to-Value (LTV) ratio is 50%, meaning users can borrow up to 50% of the value of their Bitcoin collateral (Strike FAQ: What Are the Loan Rates, Fees, and Terms?). For a $2 million loan, this implies the total value of the collateral must be at least $4 million, calculated as $2,000,000 / 0.5 = $4,000,000. The loan terms also specify a 12-month duration, with loan amounts ranging from $100,000 to $2,000,000, and interest rates starting at 12% APR, confirming that a $2 million loan is within the allowable range.
To organize the loan terms, the following table summarizes the key details relevant to the query:
| Category | Details |
| Maximum Initial LTV Ratio | 50% |
| Loan Term | 12 months |
| Loan Amount Range | Minimum $100,000, maximum $2,000,000 |
| Interest Rate | Starting at 12% APR for Monthly Interest, effectively 13% for Payment at Maturity due to compounding |
| Origination Fee | 0% |
| Early Repayment Fee | 0% |
This table encapsulates the financial structure of Strike’s Bitcoin-backed loans, providing a clear reference for understanding the collateral requirements.
Determining the Current Bitcoin Price
To calculate the amount of Bitcoin needed, the current price of Bitcoin must be established. Given the date is April 27, 2025, 03:11 AM +07, recent and reliable financial data was sourced. Initial research showed prices from multiple platforms, including Coinbase at $94,259.42 per BTC (April 25, 2025, 10:53 AM +07), CoinMarketCap at $94,237.71 per BTC (April 25, 2025, 4:55 PM +07), and TradingView at $94,689 per BTC (April 25, 2025, 8:25 PM +07). However, to ensure the most up-to-date price, Yahoo Finance was consulted, showing a current Bitcoin price of $94,357.19, with a slight decrease of -0.10% from the previous close of $94,708.266, and a day’s range from $93,986.72 to $95,211.09 (Yahoo Finance – Bitcoin Price). This price was corroborated by Coinbase, showing $94,356.58 per BTC, confirming consistency.
Given the proximity of these prices and the need for a current value, $94,357.19 per BTC from Yahoo Finance was used, as it reflects a live, up-to-date figure suitable for the calculation on April 27, 2025.
Calculation of Required Bitcoin
With the required collateral value of $4,000,000 and the current Bitcoin price of $94,357.19 per BTC, the amount of Bitcoin needed is calculated as follows:
[ \text{Required Bitcoin} = \frac{\text{Required Collateral Value}}{\text{Current Bitcoin Price}} = \frac{4,000,000}{94,357.19} \approx 42.3921 \text{ BTC} ]
This calculation was performed to ensure accuracy, with the result rounded to four decimal places for precision, yielding 42.3921 BTC. For practical purposes, and considering common cryptocurrency transaction practices, this can be rounded to 42.39 BTC when expressed to two decimal places, as is typical in financial contexts.
To verify, an alternative calculation using Coinbase’s price of $94,356.58 per BTC was also performed, resulting in 4,000,000 / 94,356.58 ≈ 42.3922 BTC, which is nearly identical, reinforcing the estimate.
Process and Considerations
The process of opening a Bitcoin-backed loan involves selecting the loan type (Monthly Interest or Payment at Maturity), setting the loan amount, and determining the collateral amount using a slider in the Strike app, as detailed in the FAQs (Strike FAQ: How Do I Open a Bitcoin-Backed Loan?). Users must ensure the collateral value meets the LTV requirement, with the ability to add more collateral to reduce the risk of margin calls or liquidations due to Bitcoin price volatility. The FAQs also note that loans do not affect credit scores, as they are not reported to credit agencies, making them a flexible financial tool (Strike FAQ: Bitcoin-Backed Loans Section).
Risks include Bitcoin price drops triggering margin calls, where users must add more collateral or repay part of the loan to maintain the LTV ratio, or face liquidation if they fail to respond within the specified time frame (Strike FAQ: What Are Margin Calls and Liquidations?). Given these dynamics, the exact amount of Bitcoin needed might vary slightly at the time of initiating the loan, depending on Strike’s pricing mechanism, but the calculation based on the current market price provides a reliable estimate.
Community and Industry Context
While Strike’s official FAQs provide the most direct information, community discussions on platforms like Reddit indicate interest in Bitcoin-backed loans, with users noting Strike’s efforts in this area (Reddit Post: Strike Working on Offering Loans Against BTC). This aligns with the broader trend of cryptocurrency platforms offering financial products, as seen with competitors like Coinbase, which also offers crypto-backed loans (Coinbase Loans), though Strike’s focus is specifically on Bitcoin.
Conclusion
Based on the analysis, for a $2 million loan with Strike, you need at least $4,000,000 worth of Bitcoin as collateral, given the 50% maximum initial LTV ratio. At the current Bitcoin price of $94,357.19 per BTC (as of April 27, 2025), this translates to approximately 42.39 BTC. This estimate accounts for the dynamic nature of Bitcoin prices, with the understanding that the exact amount may vary slightly at the time of loan initiation. Users are advised to check Strike’s platform for the exact pricing and ensure they understand the risks, such as price volatility and potential margin calls, before proceeding.
Key Citations