Ripple CEO Brad Garlinghouse criticized Strategy and its chairman Michael Saylor’s Bitcoin financing model during an interview with CNBC, arguing that financial engineering cannot create long-term value. Garlinghouse stated that Strategy’s practice of financing Bitcoin purchases through preferred stock issuance has harmed the crypto market, noting that the trading price of STRC preferred shares, discounted by approximately 25% to 26% from their $100 par value, represents a severe negative assessment of Strategy’s strategy.
Ripple CEO Criticizes Strategy's Bitcoin Financing Approach
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Summary
Bitcoin market news: During a CNBC interview, Ripple CEO Brad Garlinghouse criticized Strategy and Michael Saylor’s Bitcoin financing model, stating that financial engineering does not create long-term value. Garlinghouse argued that issuing preferred shares to fund Bitcoin purchases undermines the crypto market, pointing out that STRC shares trade at a 25% to 26% discount to their $100 par value. He described this as a strong negative signal regarding the strategy.
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