Ripple CEO blasts Michael Saylor for ‘hurting’ crypto market
Ripple CEO Brad Garlinghouse has publicly criticized Michael Saylor’s Bitcoin (BTC) acquisition strategy, arguing that the approach has hurt the broader cryptocurrency market and failed to create long-term value.
Speaking during a June 26 interview on CNBC’s Squawk on the Street, Garlinghouse aimed at the funding model used by Strategy to expand its Bitcoin holdings.
While maintaining a positive long-term outlook on Bitcoin, the Ripple chief said the company’s reliance on preferred stock offerings and other capital-raising mechanisms to purchase more BTC amounts to financial engineering rather than sustainable value creation.
Garlinghouse argued that the future value of digital assets will ultimately depend on practical use cases rather than aggressive treasury strategies.
“Financial engineering does not drive long-term value. <…> Team Michael Saylor wasn’t focused on the right stuff, and that has hurt the overall market,” Garlinghouse stated.
The Ripple executive reiterated the company’s long-standing position that cryptocurrency adoption should be driven by utility.
Ripple has consistently promoted XRP as a tool for cross-border payments and institutional financial services, contrasting its approach with Bitcoin-focused investment strategies centered on asset accumulation.
Strategy Bitcoin investments troubles
Garlinghouse’s criticism arrives at a challenging time for Strategy’s Bitcoin treasury model.
In May 2026, Strategy sold 32 Bitcoin for approximately $2.5 million to help meet dividend obligations tied to its preferred stock offerings.
The transaction marked the company’s first Bitcoin sale in years and drew attention because it appeared to depart from Saylor’s long-standing commitment to holding Bitcoin indefinitely.
At the same time, Strategy’s perpetual preferred stock, known as STRC, has traded significantly below its $100 par value, reflecting investor concerns about dividend sustainability and the company’s funding structure.
The decline has also affected Strategy’s ability to issue additional preferred shares, a key source of capital previously used to finance Bitcoin purchases.
Despite these challenges, Strategy remains one of the largest corporate Bitcoin holders, with approximately 844,000 BTC on its balance sheet.
Supporters of Saylor’s approach argue that Strategy’s Bitcoin-focused treasury strategy has generated substantial shareholder value over the long term and increased Bitcoin exposure per share.
They view recent adjustments, including the limited Bitcoin sale, as prudent financial management rather than signs of weakness.
However, critics contend that heavily leveraged accumulation strategies can amplify market volatility and create risks that extend beyond a single company.
