Ripple CEO Says Michael Saylor Has Hurt Crypto Market

Ripple Chief Executive Officer Brad Garlinghouse publicly criticized Strategy Chairman Michael Saylor's approach to buying Bitcoin.

Garlinghouse told CNBC on June 26 that financial engineering does not create long-term value and that the lasting value of digital assets comes from utility, The Block reported. He said Saylor had not focused on the right direction and that his approach had hurt the broader market.

Garlinghouse was referring to Strategy's practice of raising money through preferred stock offerings to buy more Bitcoin. He said STRC was trading 25% below its $100 par value and called the decline a guilty verdict on Strategy's strategy. STRC fell as much as 26% below par a day earlier, marking a record low. The security carries an annual cumulative dividend obligation of 11.5%.

Strategy's common stock, MSTR, has also remained under pressure. As Bitcoin fell to $58,000, MSTR dropped to its lowest level since February 2024 and closed at about $82 on the day.