The recent Bitcoin craze may have been driven by the approval of ETFs in the United States, but blockchain entrepreneur Jack Mallers wants to expand the cryptocurrency’s availability in Europe.
His company, Strike, announced on Wednesday the launch of its Bitcoin-focused app, which includes buying and selling services as well as payment tools, to customers across Europe, excluding the United Kingdom. United.
In an interview with Fortune, Mallers, 30, said he sees Europe as Strike’s second-largest market after the United States. With the price of Bitcoin skyrocketing in recent months, Strike will enter a competitive landscape that includes Coinbase, eToro, and BitPanda. Robinhood also announced that it would expand its crypto services to Europe in December.
“We don’t think of Europe as that populous, at least compared to America,” Mallers said. Fortune. “We believe that Bitcoin is the greatest innovation of our lifetime and we want to be one of the best in the world in this field.”
The rise of Bitcoin
Founded in 2019, Strike has taken a Bitcoin-first approach to crypto services, as competitors such as Coinbase and Kraken offer a variety of cryptocurrencies, from Ether to Dogecoin.
Strike has been experimenting with payment services, including implementing compatibility with the Lightning Network, a Layer 2 protocol that allows for faster and cheaper transactions, as well as partnering with Twitter on a tipping feature.
Since raising $80 million in September 2022, just two months before the FTX collapse shook crypto markets, Strike has continued its expansion of payment tools. In late 2022, the company introduced a feature called Send Globally that allows users to transfer money between different currencies using Bitcoin as an intermediary. It also moved its global headquarters to El Salvador, whose president, Nayib Bukele, has embraced Bitcoin as he faces accusations of authoritarian behavior.
Pending ETF approval, Bitcoin broke out of its slow rut in late 2023. After the official announcement in January, the cryptocurrency’s price soared to an all-time high of over $70,000 in March and remained above $60,000.
Mallers said that despite Strike’s focus on payment tools, client demand was primarily for trading and custody services. Strike moved its custody operations in-house in June following the bankruptcy of its previous custodian, Prime Trust.
He expects Bitcoin to continue its upward trajectory, especially amid inflationary concerns. “Rates above 5% and gold hitting all-time highs tell you everything you need to know about the state of the market and the world as it relates to confidence and the deficits they’re seeing,” Mallers said .
European expansion
By expanding Strike to Europe, Mallers is betting that consumers will appreciate its platform’s Bitcoin strategy over competitors who might be distracted by other crypto sectors. (A spokesperson declined to say how many countries the app will be available in.)
“We see a world where everyone ends up wanting a high-quality Bitcoin experience and not this diluted crypto experience,” Mallers said. Fortune. “As cycles go by and things like FTX and Binance happen, a lot of people lose confidence in things like Dogecoin because, in my opinion, you should never have had that confidence in the first place place.”
He said Strike’s focus on Bitcoin has led to lower processing fees for buying and selling the asset compared to other platforms like Coinbase. He added that in initial trials in Europe, Strike would also facilitate lower-cost dollar-to-euro conversions via Bitcoin compared to more traditional transfer platforms like Wise.
Although Strike offers Tether to users in Latin America and Africa, Mallers said the app would not include the stablecoin during its European launch due to falling demand. Echoing a recent interview with Tether CEO Paolo Ardoino, he said there was no appetite in the United States or Europe, where consumers are not looking to protect themselves against the volatility of their currency. ‘origin.
The European expansion represents an ambitious next step for the company, which has approximately 70 full-time employees. Mallers said Strike is growing 100% month-over-month and is profitable, with the company reinvesting some of its profits into Bitcoin through its own treasury.
“We strive to own as much Bitcoin as possible,” Mallers said. Fortune. It’s a philosophy he follows in his personal life as well. In a post on earlier this year, the founder proclaimed that he no longer owned any U.S. dollars.
