Ripple CEO Says Bitcoin Remains Strong but Strategy’s Model Raises Concerns

Highlights:

• Garlinghouse said digital assets need real utility, not financial engineering, to create long-term value.
• He said Saylor’s team focused on the wrong priorities, which hurt the wider crypto market.
• He remains bullish on Bitcoin, but warned that Strategy’s funding model may increase market pressure.

Ripple CEO Brad Garlinghouse said he remains bullish on Bitcoin, but he criticized Strategy’s method of funding its BTC purchases. He made the comments in a CNBC interview on Friday, as Bitcoin traded near the $60,000 level and Strategy’s preferred shares faced heavy pressure.

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Garlinghouse did not question Bitcoin as an asset. Instead, he raised concerns about the way Strategy has used financial products to keep buying more Bitcoin. Strategy, led by Michael Saylor, is the largest corporate holder of Bitcoin and has made BTC accumulation a central part of its business model.

As of June 22, Strategy held 847,363 BTC after buying an additional 520 BTC for about $35 million. At Bitcoin’s recent price of around $60,404, the company’s Bitcoin holdings were worth about $51.2 billion. The large position gives Strategy strong exposure to Bitcoin, but it also makes the company more sensitive to sharp price moves.

During the interview, Garlinghouse said, “Financial engineering does not drive long-term value.” He added that the “long-term value of any digital asset is going to be driven by utility.” His comments placed fresh attention on a growing debate in the crypto market. Many investors still see Bitcoin as a strong long-term asset. However, Garlinghouse argued that crypto companies cannot depend only on complex financial products. Instead, he said the industry needs real use cases that create lasting demand.

Ripple CEO: Michael Saylor's Bitcoin Strategy Has Hurt Crypto Market

Ripple CEO Brad Garlinghouse criticized Strategy Chairman Michael Saylor's approach of using financial engineering to fund continued bitcoin purchases, saying long-term digital asset value should be driven by… pic.twitter.com/CFRkVSjcji

— Wu Blockchain (@WuBlockchain) June 27, 2026

Garlinghouse Says Crypto Needs Real Utility

Garlinghouse said Strategy’s approach has not helped the broader digital asset market. He said, “Team Michael Saylor wasn’t focused on the right stuff and that has hurt the overall market.”

The Ripple chief’s remarks focused on Strategy’s use of preferred shares to support Bitcoin buying. Preferred shares are a special type of stock that can pay regular dividends to investors. Companies can use them to raise money, but they also create financial obligations. Garlinghouse pointed to Strategy’s STRC preferred stock as an example of market concern. STRC was trading about 25% below its $100 par value, according to reports on the CNBC interview. Garlinghouse called that decline a “damning indictment” of Strategy’s model.

STRC Decline Adds Pressure on Strategy

Strategy has used preferred securities, including STRC, as part of its wider plan to fund more Bitcoin purchases. STRC carries cumulative dividend obligations of 11.5% annually. That creates pressure when Bitcoin falls, and investor demand weakens.

Supporters believe Strategy has helped bring more corporate attention to Bitcoin. Critics say the model can become risky when the company depends heavily on market financing while Bitcoin prices remain weak. CryptoQuant also warned this week that Strategy should pause new Bitcoin purchases and rebuild its cash reserves. The firm said a stronger cash position would help reduce pressure on the company during weaker market conditions.

Strategy’s annualized dividend obligations have nearly quadrupled to $1.2B, while its cash reserve has fallen 38% in 2026.

Dividend coverage collapsed from 7+ years to just 14 months.

The company needs to stop buying Bitcoin and rebuild cash. pic.twitter.com/TR0oaAnT5k

— CryptoQuant.com (@cryptoquant_com) June 23, 2026

Garlinghouse’s comments show a clear split in how major crypto leaders view long-term value. He remains bullish on Bitcoin, but he believes the next stage of crypto growth should come from real utility, not only from balance sheet strategies.

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