Saylor's STRC Stack Gets a Side-Eye From Ripple's Top Dog 🐶

Ripple CEO Brad Garlinghouse publicly criticized Strategy Chairman Michael Saylor on Friday for using preferred stock offerings, including STRC, to fund additional Bitcoin purchases, saying the financing model prioritizes financial engineering over long-term value creation. In an interview with CNBC, Garlinghouse stated, "Financial engineering does not drive long-term value … long-term value of any digital asset is going to be driven by utility," and added, "Team Michael Saylor wasn't focused on the right stuff and that has hurt the overall market."

Garlinghouse pointed to STRC preferred shares, which trade around 25% below their $100 face value, describing the discount as a "damning indictment" of Strategy's approach to financing BTC acquisitions. Strategy has been issuing preferred securities such as STRC for roughly a year to purchase additional Bitcoin, and the STRC carries a cumulative annual dividend obligation of 11.5%, creating an ongoing payout commitment for the company.

The remarks came as Bitcoin's price slipped slightly below $60,000 on Friday, with MSTR, STRC and $BTC all trading lower during the session. Despite the criticism of Strategy's capital structure, Garlinghouse said he remains bullish on Bitcoin, distinguishing his stance on the asset from his concerns about how Strategy funds its accumulation. Strategy, formerly known as MicroStrategy, is the largest publicly traded corporate holder of Bitcoin and has used a series of equity and debt offerings to expand its position in $BTC.