Ripple CEO Brad Garlinghouse Blames Michael Saylor’s Strategy for Crypto Market Slump

Ripple CEO Brad Garlinghouse has publicly criticized Michael Saylor’s Bitcoin acquisition strategy at Strategy Inc. He argued that Strategy’s financial engineering has increased volatility and hurt the broader crypto market.

Ripple CEO Brad Garlinghouse Slams Michael Saylor’s Bitcoin Funding Strategy

Ripple CEO Brad Garlinghouse took to X and blamed Michael Saylor’s Strategy for the crypto market slump again. He also quoted that “Financial engineering doesn’t drive long-term value. utility does”

The post came shortly after a CNBC Squawk on the Street highlighted his interview comments. In the interview, Garlinghouse directly addressed Strategy’s Bitcoin funding approach under Executive Chairman Michael Saylor:

I think team Michael Saylor wasn’t focused on the right stuff, and that has hurt the overall market.

Ripple CEO Brad Garlinghouse claimed he is still bullish on Bitcoin. However, he slammed Strategy’s use of preferred stock issuance and other financing tools to aggressively accumulate Bitcoin as a form of leverage. He explained that it “added some excitement on the way up and now that’s compounding on the way down.”

Garlinghouse pointed to the sharp decline in STRC, Strategy’s perpetual preferred stock, below its $100 par value. However, STRC closed 12.20% higher at $83.67 after Michael Saylor’s Strategy announced digital credit repurchase, 12% dividend, and a $3.80 billion cash reserve plan.

Crypto Market Slump and Bitcoin Selling Pressure

Ripple CEO Brad Garlinghouse’s comments came as Bitcoin fell below $60K while XRP faces a drop below $1 amid broader crypto market volatility. The next XRP support levels based on volume are $0.80, $0.62, and $0.51, as per on-chain data.

Meanwhile, Michael Saylor’s Strategy has announced Bitcoin Monetization Program to sell BTC to fund the USD Reserve, STRC dividend, and MSTR stock repurchase. This triggered a sharp 12.60% rebound in MSTR stock on Monday.

However, Bitcoin sales by Strategy may lead to a further drop in Bitcoin and a crypto market crash. Bitcoin analysts remain cautious as BTC is trading below the key 200-week moving average.

The crypto prices remain in a correction phase, with participants watching for signs of stabilization. Ripple CEO remarks spotlight headwinds for the cryptocurrency market, with the company focusing on building real-world utility to boost adoption for the next wave of bull market.