Ripple CEO Criticizes Strategy (MSTR)-style Bitcoin (BTC) Purchase...Even Bullish Investors 'Turn Away'

▲ Brad Garlinghouse, Bitcoin (BTC), Strategy (MSTR), Michael Saylor/AI generated image

Saylor's Bitcoin (BTC) buying strategy was shaken by a single word. Ripple CEO Brad Garlinghouse, while maintaining his bullish stance on Bitcoin, directly criticized Strategy (MSTR)'s debt-based accumulation model.

According to crypto media outlet BeInCrypto on June 27 (local time), Garlinghouse called Michael Saylor's leverage-based Bitcoin model a “fatal indictment” on CNBC. Garlinghouse maintained a positive outlook on Bitcoin's long-term prospects but emphasized that the value of the asset itself and the funding structure Saylor built should be viewed separately.

Strategy's STRC perpetual preferred shares were trading at approximately $74 at the time of Garlinghouse's remarks, about 26% below their $100 par value. The STRC discount widened in 2026, and the market is pricing in Strategy's growing financial burden.

Annual dividend payments linked to STRC have increased to approximately $1.2 billion. Dividend capacity has shrunk from over 7 years to about 14 months. Strategy sold 32 BTC in late May to fund STRC dividend payments, marking the company's first instance of disposing of Bitcoin to manage financial obligations.

Garlinghouse stated, “Financial engineering does not create long-term value. The long-term value of all digital assets comes from utility.” He presented Ripple's emphasis on XRP-based cross-border payment infrastructure as a contrasting example to leverage-centric accumulation strategies.

In its 2025 Impact Report released this week, Ripple announced that its annual donations exceeded $70 million. Ripple utilized RLUSD and XRP Ledger technology for small business loans, humanitarian aid, and water accessibility programs. Through the Accion Opportunity Fund partnership alone, over $53 million in capital was delivered to financially underserved small businesses. Strategy holds over 843,000 BTC, accounting for approximately 76% of publicly traded companies' Bitcoin holdings, and in addition to STRC, it faces the burden of a securities investigation that began in early 2026.

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