Ripple CEO Brad Garlinghouse said Michael Saylor’s Strategy Inc. helped deepen the crypto selloff through leveraged Bitcoin(BTC) accumulation. Key Points: Garlinghouse criticized Strategy’s B
Ripple CEO Brad Garlinghouse said Michael Saylor’s Strategy Inc. helped deepen the crypto selloff through leveraged Bitcoin(BTC) accumulation.
Key Points:
- Garlinghouse criticized Strategy’s Bitcoin funding model and said utility, not financial engineering, creates long-term value.
- His comments came as Bitcoin traded below $60,000 and XRP(XRP) risked a drop below $1.
- Strategy’s planned Bitcoin Monetization Program raised concerns about added selling pressure during a weak market.
Garlinghouse renewed his criticism on X after CNBC’s Squawk on the Street highlighted comments from his interview about Strategy’s Bitcoin buying plan.
He said, “Financial engineering doesn’t drive long-term value. utility does,” and added that “team Michael Saylor wasn’t focused on the right stuff, and that has hurt the overall market.”
Garlinghouse said he remains bullish on Bitcoin, but argued that Strategy’s use of preferred stock and other financing tools added leverage to its accumulation campaign. He said that approach “added some excitement on the way up and now that’s compounding on the way down.”
The Ripple chief pointed to STRC, Strategy’s perpetual preferred stock, after it fell below its $100 par value. STRC later closed 12.20% higher at $83.67 after Strategy announced a digital credit repurchase, a 12% dividend and a $3.80 billion cash reserve plan.
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The comments landed as Bitcoin fell below $60,000, while XRP faced pressure near the $1 level during a wider correction in crypto prices.
On-chain data cited in the report placed XRP’s next support levels at $0.80, $0.62 and $0.51. The same market backdrop has kept traders focused on whether large treasury holders could add more forced selling to an already weak tape.
Strategy has announced a Bitcoin Monetization Program to sell BTC and fund its USD Reserve, STRC dividend and MSTR stock repurchase.
The announcement helped MSTR stock rebound 12.60% on Monday, but it also sharpened concerns about potential Bitcoin sales.
Analysts remain cautious because BTC is trading below its key 200-week moving average. Garlinghouse’s comments framed the market weakness as a test of whether crypto valuations can rely on utility rather than balance-sheet maneuvers.
Strategy built its market identity around aggressive Bitcoin purchases and financing structures that gave investors leveraged exposure to the asset. That model amplified attention during rallies, but the latest selloff has turned the same structure into a source of pressure.
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