Hi Jack,

Love the idea of a Strike credit card, backed by Bitcoin, for my day-to-day expenses that I pay off each month. I am particularly interested in a cash rebate paid in Bitcoin because I understand a rebate is generally not taxable upon receipt. Would Strike consider this and will Strike also provide fraud protection with the credit card?

Currently, I have a traditional credit card that gives me 2% cash back on all my purchases, which I then use to buy Bitcoin each month. I was looking at the Fold card, which offers a 2% rebate paid directly in Bitcoin. Having a Bitcoin rebate would eliminate the step of purchasing Bitcoin and is generally not a taxable event upon receipt because the IRS considers it a rebate. This setup also forces me to DCA into Bitcoin monthly, and since selling the Bitcoin is a taxable event, it discourages frivolous spending. I also appreciate the idea of earning interest on fiat that is loaned out to users against their Bitcoin collateral but the interest received is a taxable event.

Ultimately, I would prefer to transact primarily with Bitcoin and convert all my fiat into BTC each month.

The interchange fees you receive from the credit card companies and the spreads on Bitcoin would be more than the cost to provide the rebate and allow Strike to stack more Bitcoin.

A credit card is essential for day-to-day purchases so that you're not selling Bitcoin to buy necessities like groceries and gas and a Bitcoin rebate would allow the card holder to stack sats and increase their collateral on their Bitcoin backed loan.The card also has the benefit of fraud protection which is essential in today’s world.