#btc #BTCProbes60KKeySupportLevel

Ripple CEO Says Michael Saylor's Strategy Is a New Burden for the Crypto Market
Ripple CEO Brad Garlinghouse says he remains optimistic about Bitcoin's long-term prospects. However, he believes the funding strategy used by Michael Saylor—issuing preferred stock to buy Bitcoin—has had a negative impact on the overall crypto market.
In an interview with CNBC on Friday (June 27), Garlinghouse said the approach relies more on financial engineering 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 stressed that his view on 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 stock to raise funds to buy more Bitcoin.
One such instrument is STRC, which offers an annual dividend of 11.5% and is designed to trade around $100 per share. However, Garlinghouse noted that STRC is now trading about 25% below that value, evidence that the strategy is coming under pressure.
On Thursday, STRC shares even hit an all-time low after falling about 26% below their par value. At the same time, Strategy's common stock also fell to its lowest level since February 2024, while Bitcoin's price briefly dropped below $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 holding more than seven years of reserves to only about 14 months.
Furthermore, when STRC trades below $100, Strategy's ability to issue new shares to fund Bitcoin purchases is hampered, forcing the company to temporarily suspend that mechanism.
On the other hand, Benchmark-StoneX analyst Mark Palmer believes Strategy's funding engine has become less efficient but cannot yet be considered a complete failure. He also dismissed the notion that STRC's condition is comparable to assets that have experienced total collapse.