Ripple CEO stays bullish on bitcoin but says Saylor's strategy has hurt crypto

Markets Ripple CEO stays bullish on bitcoin but says Saylor's strategy has hurt crypto Ripple's Brad Garlinghouse called Strategy's preferred-stock funding model "financial engineering" that distracted the market, pointing to STRC's slide to a record low as the evidence. He runs the company behind XRP, a bitcoin rival. By Shaurya Malwa Jun 27, 2026, 7:58 a.m. 2 min read Make preferred on Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Make preferred on Summary Show Ripple CEO Brad Garlinghouse said he remains bullish on bitcoin but argued that Michael Saylor’s preferred-share funding model for buying the token has hurt the broader crypto market. Garlinghouse criticized Strategy’s STRC preferred stock, which carries an 11.5% dividend and is designed to trade near $100, as a “damning indictment” of the strategy after it fell about 25% below par to a record low. The pressure on Strategy’s model has intensified as bitcoin slipped below $59,000. Ripple CEO Brad Garlinghouse said he remains bullish on bitcoin but that Michael Saylor's approach to funding bitcoin purchases has damaged the broader crypto market, in a CNBC interview on Friday, as the preferred stock at the center of Strategy's model fell to a record low. "Financial engineering does not drive long-term value," Garlinghouse said, arguing that the lasting value of any digital asset comes from its usefulness. "Team Michael Saylor wasn't focused on the right stuff and that has hurt the overall market." He separated that from his view on the asset itself, saying he is still bullish on bitcoin. Garlinghouse's target was the machine Strategy has used to accumulate bitcoin. For about a year, the company has issued preferred shares, a class of stock that pays a fixed dividend, to raise cash for more bitcoin. Its STRC share carries an 11.5% annual dividend and is engineered to trade near $100. Garlinghouse pointed to STRC trading about 25% below that level as a "damning indictment" of the strategy. The stock hit a record low on Thursday, falling as much as 26% below par, while Strategy's common stock dropped to its lowest since February 2024 and closed around $82 on Friday, all as bitcoin fell below $59,000. The criticism lands on a week of mounting pressure on the model. CryptoQuant said in a report that Strategy should pause its bitcoin buying and rebuild its cash reserves, noting the cushion behind STRC's dividends has thinned from more than seven years of coverage to about 14 months. When STRC trades below $100, Strategy's engine for issuing shares and buying bitcoin stalls, which is why the company has paused it. Benchmark-StoneX analyst Mark Palmer argued that Strategy's funding engine has become "less efficient" rather than broken, and rejected comparisons between STRC and assets that have collapsed outright. Latest Crypto News 1 Dogecoin and Hyperliquid's HYPE led weekly crypto losses as AI stocks lure buyers 14 minutes ago 2 Aave, Solana ecosystem tokens lead crypto rebound as bitcoin steadies near $60,000 11 hours ago 3 U.S. House Democrat, who may soon run key committee, condemns crypto in 401(k)s 12 hours ago 4 Former Ethereum Foundation leader warns of funding gap as governance shifts 13 hours ago 5 Anti-trafficking group says Clarity Act's Section 604 could weaken accountability 13 hours ago 6 Virtuals' Jansen Teng says AI agents are evolving into autonomous economic actors 13 hours ago 7 Securitize expects to raise $400 million as tokenization firm nears public debut 16 hours ago 8 CoinDesk 20 performance update: AAVE jumps 8.9%, leading index higher 18 hours ago 9 Wall Street's IPO revival hasn't reached dot-com euphoria levels, Goldman Sachs says 19 hours ago 10 With crypto ending the first half in the red, bitcoin's solace is it beat Strategy 20 hours ago Latest Research Equities on Crypto Rails: A Platform Comparison Equities on Crypto Rails: A Platform Comparison US equities on crypto rails: access is easy, on-chain composability is the real test. Only Binance and Backpack deliver both - and only Binance at scale. By CoinDesk Research 22 hours ago US equities on crypto rails: access is easy, on-chain composability is the real test. Only Binance and Backpack deliver both - and only Binance at scale. Why it matters : US equities on crypto rails: access is easy, on-chain composability is the real test. Only Binance and Backpack deliver both - and only Binance at scale. View Full Report More From Markets Dogecoin and Hyperliquid's HYPE led weekly crypto losses as AI stocks lure buyers Aave, Solana ecosystem tokens lead crypto rebound as bitcoin steadies near $60,000 Former Ethereum Foundation leader warns of funding gap as governance shifts