Ripple CEO Criticizes Strategy’s Preferred-Funded Bitcoin Model as Company Clears $1.25 Billion Monetization Plan

Overview

• On Tuesday Ripple CEO Brad Garlinghouse publicly said Strategy’s use of preferred stock and debt to buy Bitcoin has hurt market confidence and that financial engineering does not create lasting value.
• Strategy has approved a Digital Credit Capital Framework to monetize up to $1.25 billion of its Bitcoin to fund cash reserves, preferred dividends, debt and buybacks.
• Investors are signaling concern: Strategy’s preferred shares (STRC) have traded about 25% below par and Reuters reported the company’s market-adjusted net asset value at roughly 0.99.
• The company holds about 847,363 BTC bought at an average near $75,650 per coin, leaving the position materially underwater while Bitcoin trades below roughly $60,000 and increasing dividend cash outlays.
• The dispute frames a wider debate over whether heavy corporate treasury builds backed by capital markets create selling pressure when funding strains rise or whether long-term crypto value will come from real-world utility, with Garlinghouse making clear he remains bullish on Bitcoin itself.