Ripple CEO Criticizes Saylor’s Bitcoin Strategy as STRC Hits Record Low

June 27, 2026 — Ripple CEO Brad Garlinghouse said he remains bullish on bitcoin but argued that Michael Saylor’s preferred-share funding model for buying the cryptocurrency has damaged the broader market, pointing to Strategy’s STRC stock sliding to a record low as evidence of the strategy’s failure.

Immediate Details & Direct Quotes

In a CNBC interview on Friday, Garlinghouse targeted the financial mechanism Strategy has used to accumulate its bitcoin holdings. The company has issued preferred shares—a class of stock paying a fixed dividend—to raise cash for additional bitcoin purchases over the past year. Its STRC preferred share carries an 11.5% annual dividend and is designed to trade near $100.

“Financial engineering does not drive long-term value,” Garlinghouse said. He argued 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.”

Garlinghouse called STRC trading about 25% below its $100 par value a “damning indictment” of the strategy. The stock hit a record low on Thursday, falling as much as 26% below par. Strategy’s common stock dropped to its lowest since February 2024 and closed around $82 on Friday.

Despite the criticism, Garlinghouse separated his view on the asset itself, stating he remains bullish on bitcoin.

Market Context & Reaction

The pressure on Strategy’s model intensified as bitcoin slipped below $59,000. When STRC trades below $100, Strategy’s engine for issuing new shares and buying additional bitcoin stalls, which is why the company has paused the program.

CryptoQuant released a report this week recommending that Strategy pause its bitcoin buying and rebuild its cash reserves. The report noted that the cushion behind STRC’s dividends has thinned from more than seven years of coverage to approximately 14 months.

Benchmark-StoneX analyst Mark Palmer offered a different perspective, arguing that Strategy’s funding engine has become “less efficient” rather than broken. He rejected comparisons between STRC and assets that have collapsed outright.

As of June 27, 2026, Strategy’s common stock trades around $82 while STRC remains below its $100 par value, with market participants watching closely for any recovery in the funding model.

Background & Historical Context

Strategy (formerly MicroStrategy) has used the preferred-share model for about one year to fund its ongoing bitcoin acquisition strategy. The company has become one of the largest corporate holders of bitcoin, with Michael Saylor serving as the public face of the aggressive accumulation approach.

Garlinghouse runs Ripple, the company behind XRP, which is often viewed as a bitcoin rival. His comments come at a time when the broader crypto market faces increased scrutiny over funding mechanisms and sustainable value creation.

The criticism lands during a week of mounting pressure on Strategy’s financial model, with market participants questioning the long-term viability of using debt-like instruments to fund cryptocurrency purchases.

What This Means

Garlinghouse’s comments signal growing skepticism among industry leaders about using complex financial engineering to fund crypto acquisitions. If STRC continues trading below par, Strategy may need to find alternative funding sources for future bitcoin purchases.

The situation highlights the tension between viewing bitcoin purely as a store of value and evaluating the financial instruments used to acquire it. Market participants should monitor whether Strategy can restore confidence in its preferred-share model or will need to pivot to other funding mechanisms.

For crypto investors, the debate underscores the importance of distinguishing between the underlying asset—which Garlinghouse remains bullish on—and the financial products used to access it. Further developments in Strategy’s funding strategy could have ripple effects across the broader crypto market.

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