Ripple CEO Criticizes Strategy's Bitcoin Financing Model, STRC Down 25% on June 27

According to BlockBeats, Ripple CEO Brad Garlinghouse criticized Strategy's preferred share financing model for Bitcoin accumulation in a CNBC interview on June 27, stating that financial engineering does not drive long-term value. Garlinghouse said the strategy has damaged the overall crypto market, arguing that Bitcoin's long-term value derives from utility rather than financial mechanisms. STRC stock currently trades about 25% below its intended $100 par value, with a dividend yield of 11.5%, while hitting a fresh low with a 26% discount on Thursday. Strategy's common stock fell to its lowest level since February 2024, closing near $82, as Bitcoin broke below $59,000.

Strategy's dividend coverage period has compressed from over seven years to approximately 14 months, signaling financial pressure on the financing mechanism. When STRC falls below $100, the company's stock issuance-and-Bitcoin-purchase engine stalls, prompting a pause in the mechanism.