Ripple CEO Brad Garlinghouse expressed confidence in bitcoin while criticizing Strategy's leveraged financing approach during a June 26 appearance on CNBC's Squawk on the Street. Garlinghouse maintained that bitcoin functions as a digital store of value, comparing it to gold, while arguing that Strategy's borrowing strategy increased market pressure during the cryptocurrency downturn. The comments reflect ongoing debate over corporate bitcoin acquisition strategies as institutional players navigate volatile market conditions.
Garlinghouse Describes Bitcoin as Digital Gold
Garlinghouse framed bitcoin as a long-term store of value asset with a clear market role. He contrasted bitcoin transfers with the physical movement of bullion, noting that moving roughly $300 billion in gold reportedly took years and billions of dollars, while transferring the same value in bitcoin could be done much more quickly and efficiently.
"I'm bullish on bitcoin," Garlinghouse said during the interview.
The Ripple executive emphasized that utility remains central to his view of long-term digital asset value. He said assets that solve problems at scale can build liquidity, demand, and trust, while bitcoin's role remains anchored in its digital gold use case.
Ripple CEO Criticizes Strategy's Leveraged Bitcoin Approach
Garlinghouse discussed Strategy's recent bitcoin sale and its potential impact on the market. He argued that Strategy's reliance on leverage intensified downward pressure, noting that while such tactics may have fueled enthusiasm during bitcoin's rise, they have also amplified losses as the market declined.
He pointed to Strategy's STRC preferred shares, saying they were trading roughly $25 below par. STRC is Strategy's perpetual preferred stock, which pays an 11.50% annual dividend that is adjusted monthly to keep it near its $100 par value.
"Because they were using leverage, Michael Saylor would characterize it differently than leverage... but at the end of the day, it was leveraged, and then you start to see that in a place that can actually compound negatively," Garlinghouse noted.
He added: "I think team Michael Saylor wasn't focused on the right stuff, and that has hurt the overall market."
Strategy's recent selling drew scrutiny after the company sold 32 BTC to fund preferred stock dividends, marking a shift from its long-standing accumulation strategy. The company later bought more bitcoin than it sold.
FAQ
What did Brad Garlinghouse say about bitcoin on June 26?
Brad Garlinghouse stated he remains bullish on bitcoin during a June 26 appearance on CNBC's Squawk on the Street. He described bitcoin as digital gold and a long-term store of value, comparing the efficiency of transferring $300 billion in bitcoin versus physical gold.
Why did Garlinghouse criticize Strategy's bitcoin strategy?
Garlinghouse argued that Strategy's reliance on leverage intensified downward market pressure during the cryptocurrency downturn. He pointed to STRC preferred shares trading roughly $25 below par and stated that the leveraged approach "compounded negatively" and "hurt the overall market."
What action did Strategy take with its bitcoin holdings?
Strategy sold 32 BTC to fund preferred stock dividends, marking a shift from its accumulation strategy. The company later bought more bitcoin than it sold.
