Lava’s Bitcoin Line of Credit (BLOC) empowers Bitcoin holders to unlock dollar liquidity for major purchases like US real estate—without selling their BTC or triggering taxable events. With BLOC, you can borrow up to 50% of your Bitcoin’s value at fixed rates starting around 5% APR, pay a simple 2% annual capital charge based only on your highest balance, and enjoy open-ended terms with no monthly payments. The process is fast, globally available, and designed for maximum flexibility: you can use your Lava Card to spend directly from your line and even earn rewards. Lava’s transparent, user-first approach means you keep your Bitcoin upside, stay agile in a competitive real estate market, and don’t get rugged by hidden fees or forced timelines. This article is authored by the Lava team, reflecting their commitment to Bitcoin-native financial freedom and practical, actionable guidance for the Bitcoin community.
What is a Bitcoin-backed loan for real estate? * It’s a loan that lets you use your Bitcoin as collateral to access dollars for property purchases, so you don’t have to sell your BTC (source: Lava Blog).
How does Lava’s BLOC differ from a traditional mortgage? * BLOC is a flexible credit line against your BTC with no monthly payments or fixed term—you control when and how much to repay.
What happens if Bitcoin’s price drops while I have a BLOC? * Your loan-to-value (LTV) ratio rises; you may need to add more BTC as collateral or repay part of your balance. Severe price drops can trigger liquidation (FAQ: Lava FAQ).
Are Bitcoin-backed loans taxable? * Borrowing against BTC is generally not taxable, but using BTC to pay interest/principal or if your BTC is liquidated to repay the loan, those are taxable events. Always consult a tax professional.
Can I close on a home using a Lava BLOC? * Yes, BLOC provides documented dollar liquidity for down payments or cash offers, and can be coordinated with your lender or title company.
Lava’s BLOC is ideal for Bitcoiners who want to preserve their long-term thesis, move fast in real estate markets, and avoid capital gains taxes from selling BTC. “A bitcoin-backed line of credit allows you to unlock dollars against your BTC so you can fund a home purchase while retaining your bitcoin exposure” (source). For more details, see the full article or reach out to the Lava team.
Ready to unlock your Bitcoin’s purchasing power? Sign up for Lava BLOC in minutes and join the Bitcoin-native financial revolution.
Lava is optimized for wealth preservation and easy access to liquidity, allowing you to borrow against your bitcoin at the best rates without having to sell.
Strike is optimized for global payments and exchange, allowing users to easily buy/sell bitcoin and move money across borders.
Lava offers the lowest fixed interest rates for bitcoin-backed loans in the market, with an all-in rate of 7-9% (5-7% fixed interest + 2% capital charge).
Strike's borrow rates start at 9.5% and go up to 13%. Rates are tiered by borrow amount and are higher for smaller loan sizes.
Lava has no minimum loan size and is available globally.
Strike requires minimums of $10,000 or more depending on region and is only available in certain countries and states.
Lava delivers loan capital in stablecoins for instant global access, with integrations for fiat on and off-ramps.
Strike uses traditional fiat rails that limit accessibility.
Intro: Lava vs. Strike
Bitcoin has evolved from a simple store of value into the foundation for a new financial system. As this ecosystem has matured, platforms like Lava and Strike have emerged as leading platforms for bitcoin financial services. While both companies provide platforms that empower you to do more with your bitcoin, they approach the market with fundamentally different optimizations.
Strike is primarily a payments and exchange platform. It is optimized for buying and selling bitcoin, global remittances, and high-frequency transactions. While Strike does offer lending, it is not its primary focus.
Lava, by contrast, is optimized specifically for borrowing against your bitcoin. It serves as a dedicated platform designed for users who want instant access to liquidity without selling their bitcoin. Lava’s entire architecture focuses on providing the most efficient, low-friction lending experience possible.
This article provides a comprehensive overview of the features, costs, and accessibility of both platforms to help you determine which service aligns with your financial goals. For users specifically looking to borrow against their bitcoin, Lava’s specialized focus on lending—rather than payments—unlocks superior interest rates, greater flexibility, and wider global access.
Feature Breakdown
Feature
Lava
Strike
Primary Focus
Bitcoin-backed loans & wealth management
Global payments & bitcoin transfers
Minimum Loan
No minimum
$10,000+ (varies by region)
Maximum Loan
$1 billion
$2 million
Interest Rate
7-9% all-in (5-7% fixed + 2% capital charge)
9.5-13%
Loan Terms
Open terms, no monthly payments required
12 months only, higher rates without monthly payments
Strike: 9.5-13% APR, with higher rates applied to smaller amounts and loans without monthly payments
Lava offers the lowest fixed interest rates for bitcoin-backed loans of anyone in the market. On a $10,000 loan, Lava's 7% all-in rate costs ~$700 annually. Strike's higher tiered rates mean you'll pay significantly more for the same loan amount.
Loan Size Flexibility
Lava: No minimum, borrow up to $1 billion
Strike: $10,000+ minimum (varies by region), borrow up to $2 million
Lava serves both retail users and institutional clients. The absence of a minimum means the platform scales across the entire spectrum of bitcoin holders. Strike's regional minimums of $10,000 or more exclude many bitcoin holders who need smaller amounts of liquidity. With Lava, all users get the same instant access and competitive rates.
Speed of Access
Lava: Distributes loan capital in stablecoins
Strike: Distributes loan capital via traditional fiat rails
Lava distributes loan capital via stablecoins, meaning funds can be sent globally for just fractions of a cent, instantly. Users can easily off-ramp to any exchange account anywhere in the world, and users in most regions can off-ramp directly to their local bank account. Strike's reliance on traditional fiat rails limits access and introduces delays inherent to legacy banking systems.
Lava gets you started in less than 5 seconds, with no documentation required. You can deposit bitcoin, specify your loan amount, and receive stablecoins instantly.
Global Availability
Lava: Available globally in any country or region
Strike: Only available in certain regions, countries, and states
Lava serves bitcoin holders worldwide, with no geographic restrictions. Anyone, anywhere can take out a loan using Lava. Strike's lending product is limited to specific countries and states, meaning many users are unable to take out loans on Strike due to local restrictions.
Overview of Features
Loan Terms and Flexibility
Lava's BLOC (Bitcoin Line of Credit):
Open terms - Keep your loan open as long as you'd like
No required monthly payments
Complete flexibility to manage your liquidity needs on your timeline
Strike Lending:
12-month loan terms only
Loans without monthly payments are charged a higher interest rate
Less flexibility for long-term wealth management
USD Yield
Lava: Offers 6.5% yield on USD deposits
Strike: Does not offer USD yield
Lava allows you to earn yield on dollar deposits, creating an additional wealth-building tool within the platform. This means your idle dollars work for you while you maintain your bitcoin position.
Spending and Rewards
Lava: Offers a card for easy spending and earning rewards
Strike: Does not offer a card
Lava's card allows you to easily spend from your dollar balance in Lava while earning rewards. You can borrow against your bitcoin and instantly start spending anywhere Visa is accepted.
Strike's Strength: Exchange & Payments
Strike reaches nearly 3 billion people across 65 countries. It offers free ACH transfers in the US. Trading fees start at 0.99%, competitive with major exchanges.
For remittances, Strike is exceptional. A construction worker in Texas can send money to family in El Salvador instantly, with minimal fees. A freelancer in the Philippines can receive payment from a US client without losing 5-10% to intermediaries.
If you need to send money across borders regularly, receive international payments, convert between currencies quickly, or buy bitcoin with low fees, Strike is optimized for these needs.
Lava's Solution: Optimized Bitcoin Lending
Lava is optimized for users looking to access liquidity by borrowing against their bitcoin. It offers the lowest rates, the broadest access, the fastest loan experience, and the features borrowers care about most.
Traditionally, accessing liquidity on your bitcoin meant selling that bitcoin for dollars. Selling means you no longer hold your bitcoin, you must pay capital gains taxes, and you give up on future appreciation.
Lava offers a superior alternative: Borrow against your bitcoin instead of selling it. You keep your long-term position, avoid taxable events, get instant access to dollars, and can pay back the loan on your timeline with no required monthly payments.
Choosing the Right Platform
When Strike Makes Sense
Strike makes sense for users who send money internationally on a regular basis within Strike's supported regions, users who want to buy and sell bitcoin with low trading fees, and users who need fast and cheap currency conversions between supported currencies.
When Lava Makes Sense
Lava makes sense for users who need dollar liquidity but don't want to sell their bitcoin, users who prefer a lending platform with no minimums or geographic restrictions, users who want open loan terms with no required monthly payments, and users who want additional features like spending cards and USD yield.
The Clear Choice for Bitcoin-Backed Lending
When comparing bitcoin-backed lending specifically, Lava delivers superior value across every category:
Costs: Lava offers the lowest fixed interest rates in the market. Strike's tiered rates are significantly higher across all loan sizes.
Speed: Lava distributes capital in stablecoins for instant global access. Strike uses traditional fiat rails that introduce delays and limit accessibility.
Accessibility: Lava is available globally with no minimums and no documentation requirements. Strike is limited to certain regions with minimums of $10,000 or more.
Features: Lava offers open loan terms with no required monthly payments, 6.5% yield on USD deposits, and a card for spending and rewards. Strike offers 12-month terms only, charges higher rates for loans without monthly payments, and provides no yield or card options.
You can get started on Lava in just a few minutes by creating an account here.
