Ripple CEO Brad Garlinghouse called Michael Saylor's leveraged Bitcoin model a 'damning indictment,' noting MicroStrategy's STRC perpetual preferred stock trading at $74, a 26% discount to its $100 par. Annual dividend obligations have risen to $1.2 billion with coverage narrowing to 14 months, and the firm sold 32 BTC to fund payments.
Brad Garlinghouse labeled Michael Saylor’s borrow-to-buy approach a 'damning indictment,' drawing a clear line between Bitcoin’s long-term utility and the financing structure underpinning MicroStrategy’s accumulation strategy.
MicroStrategy’s STRC perpetual preferred stock has traded around $74, reflecting a 26% discount to its $100 par value, while annualized dividend obligations have climbed to $1.2 billion and dividend coverage narrowed to roughly 14 months.
In late May, MicroStrategy sold 32 BTC—the first liquidation of its holdings—to service STRC dividend payments, raising questions about the sustainability of its financial obligations under market pressure.
Criticism from a major industry peer highlights concerns over leverage-driven strategies and may intensify scrutiny on MicroStrategy’s capital structure and future liquidity needs.
