Ripple CEO Garlinghouse Challenges Saylor’s Bitcoin Strategy

Garlinghouse contends that Strategy’s heavy reliance on debt and preferred stock programs to fuel its massive Bitcoin holdings adds undue pressure during market pullbacks. The friction intensified following reports that Strategy authorized a new $1.25 billion framework allowing for potential Bitcoin sales to cover dividends and debt obligations. This move comes as the company’s enterprise value recently dipped below the market value of its 847,363 BTC stash, a metric that has raised eyebrows among institutional investors.

While Strategy maintains its course by increasing its protected cash reserves to $2.55 billion and hiking dividend rates on its STRC preferred stock, the underlying performance remains tied to Bitcoin’s price volatility. With an average acquisition cost near $75,650 per coin, the company’s massive position currently faces significant unrealized losses. Garlinghouse dismisses this approach as a distraction from the industry's true mission. He insists that long-term viability rests on payment rails, settlement efficiency, and institutional utility—the pillars Ripple currently emphasizes through its focus on stablecoins and liquidity management.