Ripple CEO Brad Garlinghouse Slams Michael Saylor's Bitcoin Funding

Ripple chief executive Brad Garlinghouse said Strategy’s use of preferred‑stock issuance to finance its Bitcoin purchases harms the broader crypto market. He described the approach as “financial engineering” that does not create long‑term value and pointed to Strategy’s STRC preferred shares trading about 25% below their $100 par value as a “damning indictment.” Garlinghouse noted that the dividend‑coverage cushion for STRC has collapsed from over seven years to roughly 14 months, prompting CryptoQuant to urge Strategy to pause buying and rebuild cash reserves.

He also referenced Strategy’s recent sale of 32 Bitcoin for roughly $2.5 million to meet dividend payments, the first such liquidation in years. Despite his criticism, Garlinghouse said he remains bullish on Bitcoin itself. Bitcoin was quoted around $59,000–$60,000 as Strategy’s common stock fell to its lowest level since February 2024.