Ripple CEO Brad Garlinghouse has publicly criticized Michael Saylor’s Bitcoin acquisition strategy at Strategy Inc. He said the strategy’s financial engineering increased volatility and hurt the broader cryptocurrency market.
Ripple CEO Brad Garlinghouse criticizes Michael Saylor’s Bitcoin funding strategy
Ripple CEO Brad Garlinghouse I took to X He blamed Michael Saylor’s strategy for the cryptocurrency market’s decline once again. He also noted that “financial engineering does not create long-term value. Utility does.”
The post came shortly after CNBC’s Squawk on the Street highlighted his interview comments. In the interview, Garlinghouse directly addressed Strategy’s bitcoin financing approach under CEO Michael Saylor:
I think Michael Saylor’s team didn’t focus on the right things, which hurt the overall market.
Brad Garlinghouse, CEO of Ripple, claimed that he remains bullish on Bitcoin. However, the strategy’s use of issuing preferred stock and other financing instruments to accumulate Bitcoin has been strongly criticized as a form of leverage. “It added some excitement on the way up, and now that’s exacerbated on the way down,” he explained.
Garlinghouse noted the sharp decline in STRCStrategy’s perennial favorite stock, is below its par value of $100. However, STRC closed 12.20% higher at $83.67 after Michael Saylor’s strategy announced a digital credit buyback, a 12% dividend, and a $3.80 billion cash reserve plan.
Cryptocurrency market decline and Bitcoin selling pressure
Ripple CEO Brad Garlinghouse’s comments came as Bitcoin fell below $60,000, while XRP faces a drop to below $1 amid broader cryptocurrency market volatility. XRP’s next support levels based on volume are $0.80, $0.62, and $0.51, according to on-chain data.
Meanwhile, Michael Saylor’s strategy was announced Bitcoin monetization software to sell BTC To finance US dollar reserves, STRC dividends and the repurchase of MSTR shares. This led to a sharp 12.60% rebound in MSTR stock on Monday.
However, Bitcoin sales according to the strategy may lead to a further decline in the price of Bitcoin and a collapse of the cryptocurrency market. Bitcoin analysts remain cautious As BTC is trading below the key 200-week moving average.
Cryptocurrency prices are still in a correction phase, with participants monitoring signs of stabilization. Ripple’s CEO points to the headwinds facing the cryptocurrency market, as the company focuses on building a real-world utility to boost adoption for the next wave of the bull market.
