Garlinghouse hits debt‑funded Bitcoin play. Says he’s still bullish.

Ripple CEO Brad Garlinghouse criticized Strategy’s use of preferred stock and debt to buy Bitcoin. He said the model is speculative and adds downside volatility. He also stated he remains pro‑Bitcoin. Garlinghouse on X • crypto.news

He pointed to Strategy’s preferred shares STRC trading at a 25% discount to par as evidence of stress. Source

The critique targets the financing structure, not Bitcoin itself. Garlinghouse reiterated he’s bullish on BTC long term. Statement • Interview coverage

Why it matters now. Traders are pricing liquidity and confidence via ETF flows, leverage, treasury moves and rotating altcoin liquidity. Pressure on Strategy’s preferreds questions how durable this model is when liquidity tightens. Report

Keep the caveat in view. This is a signal on capital structure risk, not a call on Bitcoin’s value. Garlinghouse on X

What to watch next:

• Whether similar stress shows up in follow‑up flows, on‑chain metrics, open interest or filings
• How ETF flow data shapes positioning in coming sessions ETF flows explainer
• Whether capital rotates to safer crypto assets or sits in stablecoins awaiting entry

Sources: crypto.news report • CNBC interview coverage • Garlinghouse’s post on X