Ripple CEO Criticizes MicroStrategy STRC at 26% Discount as 32 Bitcoin Sold
MSTR•Ripple CEO Brad Garlinghouse called MicroStrategy’s leveraged Bitcoin strategy a 'damning indictment', noting its STRC preferred stock traded near $74, 26% below par. MicroStrategy sold 32 Bitcoin to fund $1.2 billion of annualized dividends, cutting dividend coverage from seven years to 14 months.
1. STRC Preferred Stock Discount
MicroStrategy's STRC perpetual preferred shares traded near $74, roughly 26% below the $100 par value, reflecting market concerns over the company’s financing structure.
2. Rising Dividend Obligations
Annualized dividend payments tied to STRC have reached about $1.2 billion, while dividend coverage narrowed from over seven years to approximately 14 months.
3. Bitcoin Sale to Fund Dividends
In late May, MicroStrategy sold 32 Bitcoin—the first such liquidation—to generate cash for preferred dividend payments, raising questions about the sustainability of its borrow-to-buy strategy.
4. CEO Criticism and Outlook
Ripple CEO Brad Garlinghouse labeled this leveraged model a 'damning indictment,' arguing that financial engineering does not drive long-term value even as he remains bullish on Bitcoin.



