Ripple CEO Brad Garlinghouse labeled Michael Saylor's leveraged Bitcoin accumulation strategy a "damning indictment," highlighting MicroStrategy's preferred stock (STRC) trading 26% below its $100 par value. Garlinghouse reiterated his long-term bullishness on Bitcoin but distinguished between the asset's potential and the risks of leverage. Strategy's STRC perpetual preferred stock is under pressure with annualized dividends reaching ~$1.2 billion and dividend coverage shrinking from over seven years to ~14 months. In late May, Strategy sold 32 Bitcoin to fund dividend payments, marking the first liquidation for financial obligations. Garlinghouse argued that financial engineering does not drive long-term value; utility does, citing Ripple's cross-border payment infrastructure and its 2025 impact report showing $70 million in donations. Strategy faces additional regulatory strain from a securities investigation. Despite criticism, Garlinghouse remains bullish on Bitcoin.

Key facts

• STRC preferred stock trades at ~$74, 26% below $100 par value.
• Strategy's dividend coverage window shrank from 7+ years to ~14 months.
• Strategy sold 32 BTC in May to cover STRC dividend payments for first time.
• Garlinghouse: 'Long-term value driven by utility, not financial engineering.'
• Ripple donated over $70 million in 2025, per impact report.

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