Ripple CEO Brad Garlinghouse bullish on Bitcoin as Strategy stock

Brad Garlinghouse, Ripple’s chief executive, reiterated his bullish stance on Bitcoin while warning that Michael Saylor’s preferred‑share funding model for buying the cryptocurrency has hurt the broader market, a comment made as Bitcoin slipped below $59,000 and Strategy’s STR C preferred stock fell to a record low [1].

Bullish view amid price dip

Garlinghouse told CNBC that he remains “bullish on Bitcoin, period, full stop,” separating his personal conviction from the market dynamics he blames on Strategy’s financing approach [2]. He highlighted that Bitcoin’s price had dipped below $59,000, a level that coincided with STR C shares trading about 25% under their $100 target price—a “record low” for the preferred stock [1]. The decline in STR C’s market price, he argued, is a “damning indictment” of the leveraged funding model that relies on issuing high‑yield preferred shares to buy Bitcoin.

Impact of Strategy’s financing model

Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock (STR C) carries an 11.5% dividend and is engineered to trade near $100. Its slide to roughly $75 reflects a 25% discount to par, a drop that Garlinghouse says has “hurt the overall market” by diverting attention from the utility of digital assets [1][4]. CryptoQuant noted that the cash cushion backing the dividend has shrunk from over seven years of coverage to about 14 months, prompting Strategy to pause its Bitcoin‑buying engine until reserves are rebuilt [1]. Analysts such as Benchmark‑StoneX’s Mark Palmer contend the model is “less efficient” rather than broken, but the market reaction underscores the fragility of financing structures that depend on continuous share issuance.

Market context

Bitcoin’s sub‑$59,000 level places it below recent highs of $68,000 reached earlier this year, while the broader crypto market has been pressured by both regulatory uncertainty and the fallout from leveraged funding schemes. The STR C discount mirrors a broader trend where high‑yield crypto‑related securities face valuation pressure when underlying asset prices retreat. Garlinghouse’s comments suggest that, despite short‑term price weakness, he sees long‑term value in Bitcoin’s utility rather than in financial engineering.

What to watch

• Bitcoin price at $60,000 and $55,000 – key psychological thresholds that could shape short‑term sentiment.
• STR C preferred‑share price relative to its $100 par – a move back above $90 would signal easing pressure on the financing model.
• Updates from Strategy on its cash reserve rebuild – a public statement on resuming Bitcoin purchases could shift market dynamics.

Garlinghouse’s dual message—personal confidence in Bitcoin’s long‑term upside paired with criticism of a financing strategy that amplifies market volatility—highlights a split between asset fundamentals and the structures built to fund them. Whether Bitcoin can regain momentum above $60,000 while STR C stabilizes will test the durability of both the token’s utility narrative and the financial engineering surrounding it.