Bitcoin Loan Comparison

Strike vs. Coinbase

Strike charges 7.49%–10.5% APR with $0 origination fees using custodial (proof-of-reserves for 50+ BTC). Coinbase charges a variable 5.1%+ APR with a 1%–2% processing fee using custodial (cbBTC on Morpho / Base). See the full breakdown of rates, thresholds, and custody risk below.

Terms checked individually — Strike: 2026-09-29; Coinbase: 2026-08-28.

How do Strike and Coinbase compare for Bitcoin-backed loans?

For the standardized $250,000, 50% LTV, 12-month scenario, Strike is 10% APR and Coinbase is 5.1%+ variable APR. Strike: Monthly-pay option; 12-month fixed term. Because at least one price is variable or account-tier dependent, the comparison is an estimate rather than a rate winner.

Coinbase charges a processing fee of 2% on the first $250K drawn (1% above) that is added to the loan principal and itself accrues interest — a fee that raises the effective cost above the headline rate from the day you borrow.

Strike vs. Coinbase: Feature-by-Feature Comparison

Strike

Coinbase

Interest Rate (APR)

10%

5.1%+ variable

Pricing Basis

Loan size and payment schedule

Flat rate

Fees / Charges

$0Strike

2% processing fee

Max Starting LTV

50%

75%Coinbase

Margin Call Threshold

70% LTVStrike

None — direct liquidation

Liquidation Threshold

85% LTV

86% LTVCoinbase

Margin Call Window

72 hoursStrike

No margin-call window

Custody Model

Custodial (proof-of-reserves for 50+ BTC)

Custodial (cbBTC on Morpho / Base)

Rehypothecation

Interest Payment

Monthly

Capitalized

Minimum Loan

$10,000

NoneCoinbase

Cost on a $250,000 Loan: Strike vs. Coinbase

To keep the comparison clean, both lenders are modeled at $250,000 principal, 50% starting LTV, and a 12-month term, using monthly-pay pricing where available. Strike pricing varies by loan size and payment schedule; Coinbase pricing varies by account. Actual offers can differ when those inputs change.

Loan Size	Strike APR	Coinbase APR	Strike Total Year-1 Cost	Coinbase Total Year-1 Cost	Savings
$250,000	10%	5.1%+ variable	$25,000	$18,341	Estimate only

Assumptions: $250,000 principal, 50% starting LTV, 12-month term, and monthly-pay pricing where offered. Total year-1 cost includes annualized interest and fees, but does not add a fee again when the lender's published APR already includes it. Coinbase: 2% processing fee. Variable or account-tier pricing remains an estimate and is not awarded a winner. Terms checked individually — Strike: 2026-09-29; Coinbase: 2026-08-28.

Custody and Collateral Security

Both Strike and Coinbase use similar custody approaches: custodial (proof-of-reserves for 50+ BTC) and custodial (cbBTC on Morpho / Base) respectively. Strike uses custodial (proof-of-reserves for 50+ BTC). Your Bitcoin depends on the security and solvency of that custody arrangement and could be at risk in the event of a hack, insolvency, or regulatory action. Coinbase uses custodial (cbBTC on Morpho / Base). Your Bitcoin depends on the security and solvency of that custody arrangement and could be at risk in the event of a hack, insolvency, or regulatory action.

Strike: High (Custodial)

•Custodial (proof-of-reserves for 50+ BTC)
•Rehypothecation: No
•Monthly interest payments
•0.

Coinbase: High (Custodial)

•Custodial (cbBTC on Morpho / Base)
•Rehypothecation: No
•Interest capitalized (compounding)
•Low headline rate, but a processing fee — 2% on the first $250K borrowed, 1% above — is added to your principal on every draw and itself accrues interest.

Margin Call and Liquidation: Strike vs. Coinbase

Strike triggers margin calls at 70% LTV and liquidates at 85% LTV. Coinbase has no mandatory margin-call step; positions liquidate automatically at 86% LTV. Strike gives borrowers 72 hours to respond to a margin call. Coinbase has no mandatory margin-call step.

Threshold	Strike	Coinbase
Max Starting LTV	50%	75%
Margin Call	70% LTV	None — direct liquidation
Margin Call Window	72 hours	No margin-call window
Liquidation	85% LTV	86% LTV

Safety Buffer at Each Lender's Maximum Starting LTV

This comparison uses each lender's own maximum starting LTV, not a common 50% starting position. Strike: 35.0 percentage point modeled buffer between maximum starting LTV (50%) and liquidation (85% LTV). Coinbase: 11.0 percentage point modeled buffer between maximum starting LTV (75%) and liquidation (86% LTV). Strike provides a wider safety margin.

Which is better: Strike or Coinbase?

Choosing between Strike and Coinbase requires evaluating total cost, custody risk, and which platform aligns with your borrowing profile. Strike uses custodial (proof-of-reserves for 50+ BTC) with 7.49%–10.5% APR, while Coinbase uses custodial (cbBTC on Morpho / Base) with 5.1%+ (variable) APR.

The standardized table shows a first-year estimate, but at least one lender still prices by a variable rate or account tier. Treat the dollar totals as scenario estimates, not a definitive cheaper-lender ranking.

Both platforms use similar custody approaches. Strike operates via custodial (proof-of-reserves for 50+ BTC), and Coinbase uses custodial (cbBTC on Morpho / Base). Neither platform rehypothecates borrower collateral.

Strike is the better fit for borrowers who are borrowing $10,000 or more and are comfortable with custodial lending. Coinbase is the better fit for borrowers who need smaller loans or more flexible access.

Key details to be aware of: Strike: 0.79% fee if repaying with BTC collateral, 0. Coinbase: Low headline rate, but a processing fee — 2% on the first $250K borrowed, 1% above — is added to your principal on every draw and itself accrues interest. The rate is variable, set by Morpho market utilization, and has spiked above 8% (Aug 2025).

Frequently Asked Questions

Is Strike or Coinbase cheaper for a $250,000 Bitcoin-backed loan?

The standardized $250,000, 50% LTV, 12-month estimate is $25,000 for Strike and $18,341 for Coinbase. Because at least one rate is variable or account-tier dependent, this is not a definitive cheaper-lender ranking.

How does Strike's custody model compare to Coinbase?

Strike uses custodial (proof-of-reserves for 50+ BTC). Coinbase uses custodial (cbBTC on Morpho / Base). Both platforms present similar custody risk profiles.

What is the minimum loan amount at Strike vs Coinbase?

Strike's minimum loan is $10,000. Coinbase has no published minimum. Coinbase is more accessible for smaller borrowers.

What happens if Bitcoin drops while I have a loan with Strike or Coinbase?

Strike issues a margin call at 70% LTV with a 72-hour response window and liquidates at 85% LTV. Coinbase has no formal margin-call threshold and liquidates automatically at 86% LTV. For a common 50% starting LTV (rather than each lender's maximum), the modeled buffers are 35 points at Strike and 36 points at Coinbase.

Should I use Strike or Coinbase for a Bitcoin-backed loan?

It depends on your priorities. Strike (7.49%–10.5% APR, custodial (proof-of-reserves for 50+ BTC), min $10,000) is better for borrowers who value custodial (proof-of-reserves for 50+ BTC) and have larger borrowing needs. Coinbase (5.1%+ (variable) APR, custodial (cbBTC on Morpho / Base), no minimum) is better for borrowers who value custodial (cbBTC on Morpho / Base) and need smaller loan access. Use the rate table and cost comparison above to model your specific scenario.

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Understand the key terms

Rehypothecation Discreet Log Contracts Custodial vs. Non-Custodial LTV Ratio Margin Call Counterparty Risk

See loan scenarios

$100K Loan $500K Loan $1M Loan Borrow Against 10 BTC

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