Saylors Bitcoin Model Faces Fire From Ripple CEO

Ripple CEO Brad Garlinghouse has criticized Michael Saylor’s Bitcoin strategy, arguing that Strategy’s funding approach added pressure to the wider crypto market. 

In a CNBC clip shared by Squawk on the Street, Garlinghouse said, “I think team Michael Saylor wasn’t focused on the right stuff, and that has hurt the overall market.”

Garlinghouse later posted on X that “Financial engineering doesn’t drive long-term value. Utility does.” As previously reported by crypto.news, he also said during a CNBC interview that lasting value in digital assets should come from real-world use, not from financial structuring used to keep buying Bitcoin.

His comments came as Bitcoin and XRP remained under pressure after months of weak price action. The debate now centers on whether large corporate Bitcoin strategies can support the market during downturns, or whether they add selling pressure when capital structures weaken.

Strategy Bitcoin plan draws scrutiny

Strategy has relied on equity and preferred stock programs to grow its Bitcoin holdings. Its STRC preferred stock has traded below its $100 reference level, raising questions about investor demand for the product and the cost of funding future Bitcoin purchases.

As reported by crypto.news, Strategy has now approved a new Digital Credit Capital Framework that allows the company to monetize up to $1.25 billion worth of Bitcoin if needed. Proceeds may go toward cash reserves, preferred stock dividends, debt obligations and buybacks of preferred securities or Class A shares.

The company also raised STRC’s annual dividend rate to 12% from 11.5% and increased its protected cash reserve to $2.55 billion. Strategy said the reserve covers about 17 months of preferred dividends and interest payments.

Reuters reported that Strategy’s enterprise value fell below the value of its Bitcoin holdings for the first time, with its mNAV ratio at 0.99. The company’s shares rose after it announced buybacks and the Bitcoin sale authorization, but the report said the milestone could weaken confidence in its long-running Bitcoin bet.

Market debate shifts to utility

Garlinghouse’s remarks framed the issue as a split between financial structure and utility. His position is that crypto projects need real use cases, active payment rails, settlement value and institutional adoption to create durable demand.

That message fits Ripple’s recent public focus on payments, stablecoins, custody and tokenization. Garlinghouse has argued that XRP sits at the center of Ripple’s 2026 strategy across payments, custody, liquidity and treasury management.

Supporters of blockchain utility made similar points after Garlinghouse’s comments. XRP Ledger validator Vet wrote that blockchain can solve real-world problems such as 24/7 settlement, weekend access to collateral and neutral internet-native assets.

The exchange also comes as Strategy faces pressure from its own Bitcoin-heavy balance sheet. As reported by crypto.news, Strategy holds 847,363 BTC, bought for about $64 billion at an average cost near $75,650 per coin, leaving the position billions underwater when Bitcoin trades below $60,000.