#BTCProbes60KKeySupportLevel

Ripple CEO Says Michael Saylor's Strategy Becomes a New Burden for the Crypto Market

Ripple CEO Brad Garlinghouse admitted that he remains optimistic about Bitcoin's long-term prospects. However, he assessed that the funding strategy used by Michael Saylor through issuing preferred shares to buy Bitcoin has actually had a negative impact on the overall crypto market.
In an interview with CNBC on Friday (6/27), Garlinghouse said the approach relies more on financial engineering rather than creating long-term value.
"Financial engineering does not drive long-term value. Team Michael Saylor wasn't focused on the right stuff and that has hurt the overall market," Garlinghouse said.
Despite criticizing Saylor's strategy, Garlinghouse emphasized that his view of Bitcoin has not changed and he remains bullish on the world's largest crypto asset.
The criticism was aimed at the funding model used by Strategy to continue accumulating Bitcoin. Over the past year or so, the company has issued preferred shares to raise funds to buy more Bitcoin.
One of those instruments is STRC, which offers an annual dividend of 11.5% and is designed to trade around US$100 per share. However, Garlinghouse highlighted that STRC is now trading about 25% below that value as evidence that the strategy is coming under pressure.
On Thursday, STRC shares even touched an all-time low after falling about 26% below par. At the same time, Strategy's common stock also fell to its lowest level since February 2024, while Bitcoin's price briefly dropped below US$59,000.
Pressure on Strategy's business model also came from a CryptoQuant report suggesting the company temporarily halt Bitcoin purchases and strengthen its cash reserves. According to CryptoQuant, the company's ability to pay STRC dividends has shrunk drastically, from having more than seven years of reserves to only about 14 months.
Additionally, when STRC's price is below US$100, Strategy's ability to issue new shares to fund Bitcoin purchases becomes hampered, so the company temporarily halted that mechanism.
On the other hand, Benchmark-StoneX analyst Mark Palmer said Strategy's funding engine has indeed become less efficient, but it cannot be said to have completely failed. He also rejected the notion that compares STRC's condition to assets that have experienced total collapse.