Ripple CEO remains bullish on Bitcoin, but criticizes Strategy's approach as "harming the crypto market."

June 27 news: Ripple CEO Brad Garlinghouse said in a recent CNBC interview that he remains long-term bullish on Bitcoin, but strongly criticized Michael Saylor and his strategy of continuously buying coins through preferred stock financing, arguing that his "financial engineering" approach is negatively impacting the crypto market.
Garlinghouse pointed out that Strategy relies on issuing preferred stock (such as STRC) to raise funds for purchasing Bitcoin, which is essentially a distraction of market attention rather than creating long-term value. He emphasized: "Financial engineering does not create long-term value; the long-term value of digital assets comes from real utility." He specifically noted that STRC's stock price has fallen to a discount of about 25% from its face value, which he called a "strong rejection" of that financing structure. Against the backdrop of market pressure this week, Strategy's common stock fell to its lowest level since February 2024, and Bitcoin briefly dropped below $59,000.
On the market side, a CryptoQuant report indicated that if the dividend structure is maintained, Strategy's cash buffer has declined from over seven years to about 14 months, and it suggested pausing purchases and rebuilding reserves. The current trading status of STRC below $100 has also temporarily broken the financing flywheel of "issuing tokens to buy coins." However, Benchmark-StoneX analyst Mark Palmer believes this model is more of an "efficiency decline" than a systemic collapse. Meanwhile, Ripple continues to stand from an industry-opposing perspective, emphasizing the distinct value path of its ecosystem asset XRP compared to Bitcoin. (CoinDesk)
BTC1.39%
XRP3.02%
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