Garlinghouse Slams Strategy's Preferred-Stock Model as STRC Hits Record Low

Ripple CEO Brad Garlinghouse criticized Strategy's preferred-stock funding model as 'financial engineering' and called it a distraction from real market growth. He pointed to STRC hitting a record low as proof of its weaknesses.

Garlinghouse's argument is that aggressive financial structuring like preferred stock can create liabilities disguised as strategies, which he believes led to the collapse of FTX in 2022.

Ripple wants to be seen as a stable and transparent option in crypto, with Garlinghouse touting XRP as a more robust alternative to Bitcoin. He's betting that this positioning will pay off in regulatory circles and attract cautious investors.