Ripple CEO Criticizes Strategy’s Leveraged Model as Harmful to Crypto

Ripple CEO Brad Garlinghouse has criticized Michael Saylor’s Strategy (MSTR) for its financial engineering approach, arguing that it has harmed the broader crypto market. In a CNBC interview, Garlinghouse described Saylor’s strategy as a 'damning indictment,' pointing to the company’s Stretch preferred stock (STRC) trading 25% below its $100 par value. He emphasized that long-term value in digital assets comes from utility, not financial structuring, and said Saylor’s team was not focused on the right priorities.

Garlinghouse contrasted Strategy’s leveraged model with his own focus on Ripple’s cross-border payments use case. Ripple processed $16 trillion in payments last year, but nearly none of it used digital assets. He framed the bear market as an opportunity to be 'greedy,' invoking Warren Buffett’s maxim. He also reiterated his bullish view on Bitcoin (BTC), describing it as 'digital gold' due to its portability compared to physical bullion.

Despite his criticism of Strategy, Garlinghouse remains optimistic about Bitcoin’s role in the crypto ecosystem. He highlighted the inefficiency of moving large sums of physical gold, contrasting it with Bitcoin’s ability to transfer value quickly. Ripple’s own digital asset, XRP, saw a 4% increase in price, though retail sentiment around XRP remained bearish.