Ripple CEO Brad Garlinghouse Says Saylor’s Strategy Has Hurt Crypto as STRC Hits Record Low

Ripple CEO Brad Garlinghouse did not hold back in a Friday CNBC interview, taking direct aim at Strategy chairman Michael Saylor and the financial engineering model the company has used to fund its bitcoin purchases.

“Financial engineering does not drive long-term value,” Garlinghouse said. “Long-term value of any digital asset is going to be driven by utility. Team Michael Saylor wasn’t focused on the right stuff and that has hurt the overall market.”

The comments came as bitcoin traded below $60,000 again Friday, with Strategy’s preferred shares continuing to bleed out. Garlinghouse was clear that he is bullish on bitcoin itself — it is Saylor’s method of buying it that he takes issue with.

STRC Is the Evidence He Is Pointing To

The specific target of Garlinghouse’s criticism was Strategy’s perpetual preferred stock STRC, which was trading approximately 25% below its intended $100 par value Friday. He called that decline a “damning indictment” of Strategy’s approach.

Strategy has spent roughly a year issuing preferred securities like STRC to raise capital for bitcoin purchases. STRC carries an 11.5% annual cumulative dividend obligation a cost that is now becoming a serious problem. On Thursday STRC dropped to a record low, falling as much as 26% below par. MSTR common shares also hit their lowest level since February 2024 as bitcoin touched $58,000.

Utility vs Financial Engineering

Garlinghouse’s broader point goes beyond one company. He argued that the crypto market suffers when major players prioritize financial structures over real-world utility and that Saylor’s approach has been a drag on the entire market. Coming from the CEO of Ripple, a company built around XRP’s practical use in payments and cross-border settlement, the critique lands with a clear underlying message about what actually drives lasting value in digital assets.