Brad Garlinghouse, CEO of Ripple, said that Michael Saylor’s leveraged buyout strategy for Bitcoin is a harsh criticism, pointing to MicroStrategy preferred shares that are trading far below their $100 par value.

Garlinghouse reiterated his long-term confidence in Bitcoin (BTC), but he clearly distinguished his views between the asset itself and the financial structure that Saylor has built.

Saylor’s preferred stock faces pressure

Strategy’s STRC preferred shares are trading at about USD 74, while Garlinghouse commented—meaning they are roughly 26% below the USD 100 par price. This discount has widened throughout 2026 as the market prices in Strategy’s expanding financial obligations

The annual dividend tied to STRC has increased to about USD 1.2 billion, and more importantly, Strategy’s dividend coverage gap has narrowed from more than seven years to only about 14 months

Concerns about STRC’s survival under ongoing pressure have been rising among investors

Strategy also sold 32 Bitcoins in late May to raise funds to pay STRC dividends. This is the first time the company has sold BTC to meet its financial obligations, leading to analysis from analysts who closely track the company’s funding structure

Garlinghouse says that use cases drive value

Garlinghouse’s criticism targets the gap between financial structuring and the long-term value of assets. In his view, Saylor’s borrowing-and-buying approach pressures the market without creating any genuinely lasting benefits

Designing financial structures doesn’t drive long-term value… Any long-term value of digital assets will be driven by utility

Garlinghouse has consistently reinforced this idea with Ripple’s stance. He outlined XRP’s cross-border payment infrastructure to highlight the difference from strategies driven by accumulating assets through leverage

Ripple also published its 2025 impact report this week, showing that it donated more than USD 70 million during the year

The company implemented RLUSD and the XRP Ledger for issuing small business loans, delivering humanitarian aid, and water access projects across multiple markets, with more than USD 53 million reaching small business owners who lack opportunities through a single partnership with the Accion Opportunity Fund

The 2025 Ripple Impact Report is here: https://t.co/M2TLf2K3PX From blockchain research to emerging market investments, from microfinancing to economic opportunity — last year, Ripple Impact and its partners reached millions of people around the world. 🌎

— Ripple (@Ripple) June 25, 2026

Ripple’s CEO is strongly bullish on Bitcoin

Garlinghouse also said his positive stance toward BTC remains unchanged. He distinguishes the asset’s long-term potential from the risks that arise when companies borrow large amounts to accumulate it

This criticism comes at a time when institutional adoption of Bitcoin as a treasury asset has become a major trend in 2026’s business sector. Strategy holds more than 843,000 BTC, or about 76% of all Bitcoin on the balance sheet of the public company

Many other companies have copied this treasury model, even though no company has come close to Strategy’s scale or financial sophistication

In addition to STRC, Strategy has also faced securities investigations that began at the start of 2026, creating further regulatory pressure on the company’s overall financial picture