Ripple CEO Slams MicroStrategy's Leveraged Bitcoin Model, STRC Preferred Stock Down 26%
MSTR•Ripple CEO Brad Garlinghouse slammed Michael Saylor’s leveraged Bitcoin model as a “damning indictment,” distinguishing asset value from its financing structure. MicroStrategy’s STRC perpetual preferred shares trade around $74, 26% below $100 par, while annualized dividends hit $1.2 billion and coverage contracted to roughly 14 months.
1. Ripple CEO Critiques MicroStrategy Strategy
Brad Garlinghouse called Michael Saylor’s borrow-to-buy Bitcoin model a “damning indictment,” arguing that financial engineering fails to create long-term asset utility.
2. STRC Preferred Stock Under Pressure
MicroStrategy’s STRC perpetual preferred shares trade near $74, representing a roughly 26% discount to $100 par value, a gap that has widened over the course of 2026.
3. Rising Dividends and BTC Sales
Annualized dividend payments on STRC have risen to about $1.2 billion and dividend coverage shrank from over seven years to roughly 14 months, prompting MicroStrategy to sell 32 BTC in late May to meet its obligations.
4. Bitcoin Holdings Lead Industry
MicroStrategy retains more than 843,000 Bitcoin, accounting for roughly 76% of crypto assets on public company balance sheets and underscoring its dominant market position.
