Ripple CEO Slams Strategy's Bitcoin Buying Method as 'Financial Engineering'

Ripple CEO Brad Garlinghouse has expressed his criticism of Strategy's funding method for buying Bitcoin, calling it 'financial engineering' that harms the broader crypto market.

The preferred stock-funded approach has led to a 25% decline in STRC's value below its $100 par value and hit a record low. This has raised concerns about the company's ability to meet its dividend payments, which now have only 14 months of coverage left.

Garlinghouse stressed that he remains bullish on Bitcoin itself, but criticized the funding mechanism as not driving long-term value. He pointed out that Strategy should pause its purchases and rebuild cash reserves, echoing the advice from analysts at CryptoQuant.