{"id":192149,"date":"2026-06-27T17:30:52","date_gmt":"2026-06-27T14:30:52","guid":{"rendered":"https:\/\/cryptodnes.bg\/en\/garlinghouse-ripple-criticism-strategy-bitcoin-leverage-model\/"},"modified":"2026-06-27T17:30:52","modified_gmt":"2026-06-27T14:30:52","slug":"garlinghouse-ripple-criticism-strategy-bitcoin-leverage-model","status":"publish","type":"post","link":"https:\/\/cryptodnes.bg\/en\/garlinghouse-ripple-criticism-strategy-bitcoin-leverage-model\/","title":{"rendered":"Garlinghouse Warns: Strategy’s Bitcoin Model Faces Crisis"},"content":{"rendered":"

Ripple CEO Brad Garlinghouse argues that the long-term value of digital assets must be rooted in real-world economic utility rather than aggressive financial engineering. In an interview with CNBC<\/a><\/strong>, he noted that the Strategy model\u2014which relies on raising capital to purchase more BTC\u2014functions effectively only during strong bull markets. However, during market corrections, this same mechanism could intensify price pressure and trigger a negative ripple effect across the entire industry.<\/p>\n\n\n\n

Garlinghouse clarified that his critique is not directed at Bitcoin itself, which he continues to view as a form of \u201cdigital gold.\u201d Instead, his concerns lie with how public companies utilize leverage to amplify their exposure to the asset, creating potential systemic vulnerabilities.<\/p>\n\n\n\n

STRC Becomes a Litmus Test for the Strategy Model<\/h2>\n\n\n\n

At the heart of Ripple\u2019s commentary is the performance of STRC perpetual preferred shares, a vital component of the financing mechanism for the company\u2019s leading cryptocurrency purchases. While designed to trade near its $100 par value, the instrument was exchanging hands at a roughly 25% discount\u2014around $74\u2014by late June.<\/p>\n\n\n\n

This decline significantly hampers the efficiency of the capital-raising strategy. When shares trade well below par, issuing new securities becomes more expensive, stripping the company of its ability to fund the aggressive expansion of its Bitcoin reserves under previous conditions.<\/p>\n\n\n\n

<\/p>

Some argue that Strategy's STRC falling below the $100 mark was primarily the result of leveraged positions being liquidated.

While this may be true to some extent, we believe the correction was largely driven by a deterioration in Strategy's fundamentals, as STRC's dividend\u2026 pic.twitter.com\/Gt8JrU5qgG<\/a><\/p>\u2014 Julio Moreno (@jjcmoreno) June 23, 2026<\/a><\/blockquote>