Strike, founded by Jack Mallers, has introduced a feature called Bitcoin Interest on Cash. The service allows users in the United States to earn a 3.6% annual percentage yield on their dollar balances, with payouts delivered monthly in Bitcoin.
The yield accrues daily, though payments are only triggered when the daily interest exceeds $0.01. There are no minimum or maximum balance requirements for the 3.6% rate. Users must manually opt into the feature through the Strike mobile application.
Cash deposits are held at Cross River Bank and are FDIC-insured up to $250,000 per depositor. Strike clarifies that it is not a bank, serving instead as a platform layer. User Bitcoin holdings are maintained on a one-to-one basis in multi-signature cold storage.
The company provided an example based on a Bitcoin price of $85,000. Under these conditions, a cash balance of $8,000 would generate approximately $288 in annual Bitcoin income, equivalent to about 338,824 sats.
