The recent surge in interest in Bitcoin may have been fueled by the approval of ETFs in the United States. However, Jack Mallers, a blockchain entrepreneur, is looking to broaden the reach of this cryptocurrency in Europe.
Mallers’ company, Strike, made an announcement on Wednesday regarding the launch of its Bitcoin-centric application in Europe, excluding the United Kingdom. This app not only facilitates buying and selling of Bitcoin but also provides payment tools to users.
In a conversation with Fortune, the 30-year-old Mallers expressed his belief that Europe stands as Strike’s second-largest market after the U.S. Given the remarkable surge in Bitcoin’s value in recent months, Strike is entering a competitive market that includes prominent players like Coinbase, eToro, and BitPanda. Additionally, Robinhood disclosed its plans to extend its crypto services to Europe in December.
Mallers mentioned to Fortune, “We don’t perceive Europe as overly saturated, at least not in comparison to the American market. We consider Bitcoin to be the most significant innovation of our time, and we aspire to excel globally in this domain.”
Bitcoin’s Progress
Established in 2019, Strike has adopted a Bitcoin-centric approach to cryptocurrency services, distinguishing itself from competitors like Coinbase and Kraken, which offer a range of cryptocurrencies beyond Bitcoin.
Strike has delved into payment services, including integrating with the Lightning network to enable quicker and more cost-effective transactions. Moreover, it has collaborated with Twitter on a tipping feature.
Following a funding round that raised $80 million in September 2022, just before the FTX collapse that shook the crypto markets, Strike has continued to expand its array of payment tools. Towards the end of 2022, the company introduced “Send Globally,” a feature enabling users to transfer funds across different currencies using Bitcoin as an intermediary. It also relocated its global headquarters to El Salvador, a nation where the president, Nayib Bukele, has embraced Bitcoin amidst allegations of authoritarian conduct.
With the anticipation of ETF approvals, Bitcoin surged out of a period of stagnation in late 2023. Subsequent to the official announcement in January, the cryptocurrency’s value soared to an all-time high exceeding \(70,000 in March and has since maintained levels above \)60,000.
Mallers noted that despite Strike’s focus on payment tools, customer demand has predominantly centered around trading and custody services. Following the insolvency of its former custodian, Prime Trust, Strike brought its custody operations in-house in June.
Anticipating a continued upward trajectory for Bitcoin, particularly in light of inflation concerns, Mallers remarked, “Interest rates exceeding 5% and record highs in gold indicate the prevailing sentiment in the market and the world regarding confidence and the observed deficits.”
Expansion into Europe
By extending Strike’s services to Europe, Mallers is wagering on consumers valuing his platform’s Bitcoin-centric approach over competitors potentially distracted by a broader spectrum of cryptocurrencies. (The company declined to specify the number of countries where the app will be accessible.)
Mallers asserted, “We envision a scenario where everyone seeks a top-tier Bitcoin experience rather than a diluted cryptocurrency experience. As market cycles unfold and events like FTX and Binance transpire, many individuals lose faith in cryptocurrencies like Dogecoin, which, in my opinion, should never have garnered such confidence.”
He highlighted that Strike’s emphasis on Bitcoin has resulted in lower transaction fees for buying and selling Bitcoin compared to platforms like Coinbase. Additionally, in initial trials in Europe, Strike aims to facilitate U.S. dollar-to-Euro conversions at lower costs through Bitcoin than traditional transfer platforms like Wise.
While Strike offers Tether to users in Latin America and Africa, the stablecoin will not be included in the European launch due to subdued demand. Aligning with recent statements by Tether CEO Paolo Ardoino, Mallers indicated a lack of interest in the U.S. and Europe, where consumers are not actively seeking to hedge against their native currency’s volatility.
The expansion into Europe marks an ambitious milestone for Strike, which currently boasts approximately 70 full-time employees. Mallers disclosed that the company is experiencing 100% month-over-month growth and is profitable, channeling a portion of its profits into Bitcoin through its treasury.
“Our primary focus is on accumulating as much Bitcoin as possible,” Mallers affirmed to Fortune. This ethos extends to his personal finances as well, as he declared earlier this year that he no longer holds any U.S. dollars.