Svmuu News: In a recent CNBC interview, Ripple CEO Brad Garlinghouse stated that he remains bullish on Bitcoin in the long term, but at the same time strongly criticized Michael Saylor and his strategy of continuously buying Bitcoin through preferred stock financing, arguing that this “financial engineering” approach is having a negative impact on the crypto market.
Garlinghouse pointed out that Strategy’s reliance on issuing preferred shares (such as STRC) to finance the purchase of Bitcoin is, in essence, a distraction from the market rather than a means of creating long-term value. He emphasized: “Financial engineering does not create long-term value; the long-term value of digital assets comes from real-world use cases.”He specifically mentioned that the STRC share price has fallen to a discount of approximately 25% below par value, which he described as a “strong rejection” of this financing structure.Amid market pressures this week, Strategy’s common stock fell to its lowest level since February 2024, and the Bitcoin also briefly dipped below $59,000.
On the market front, a CryptoQuant report noted that if the dividend structure continues, Strategy’s cash buffer has shrunk from more than seven years’ worth to approximately 14 months, and recommended suspending token purchases to rebuild reserves.The current trading price of STRC below $100 has also caused its “issue-and-buy” funding flywheel to temporarily stall. However, Benchmark-StoneX analyst Mark Palmer believes this situation represents a “decline in efficiency” rather than a systemic breakdown.Meanwhile, Ripple continues to take an opposing stance within the industry, emphasizing the distinct value path of its ecosystem asset, XRP, compared to “Bitcoin.” (CoinDesk)