if you don't believe that bitcoin appreciates better than 98% of enterprises at this point you are simply not even doing the most basic research on it. what bothers me is that the lenders are essentially printing money to do this, their risk is basically below zero, which is kinda cynical and exploitative. who better to give your bitcoin to for your enterprise than someone who is engaging in fiat loan activity with their bitcoin hating banksters? lol, really. sure, you are gonna gain in fiat terms as the lender but i doubt this is the right move for a founder who is probably going to sink because of taxes and inflation on their fiat assets.

Jumping in and appreciate the opportunity to ask a couple questions: 1) does Strike or any related company lend out the bitcoin collateral for additional return? 2) What did you mean by “…holding and compounding bitcoin…” Again, appreciate all the discussion.

Even if the bitcoin depreciates over the loan term(which 12mo term is more likely than say, 48 or 60mo terms), the liquidity access can still be crucial for individuals who can beat the interest rate, as it’s all paid back in fiat, not bitcoin. The bitcoin just sits as collateral. Say I wanted to build a house, but my primary asset is bitcoin, and therefor i don’t qualify for a construction loan. I could fund the building of my house using a bitcoin backed loan, then mortgage the house to pay off that loan. Construction loans are getting harder and harder to come by, as builders don’t want to take the risk and prefer cash buyers.