Ripple CEO Brad Garlinghouse pointed fingers at Michael Saylor’s Strategy (formerly MicroStrategy), saying the company’s financial engineering has damaged the broader crypto market.
“Financial engineering does not drive long-term value. Long-term value of any digital asset is going to be driven by utility,” Garlinghouse said, as Strategy’s preferred shares (STRC) traded roughly 25% below their par value.
Strategy has issued waves of debt and equity to accumulate bitcoin, arguing the premium reflects value for traditional investors seeking BTC exposure. But that premium has collapsed, and Garlinghouse’s comments signal that even crypto-native figures are questioning the model.
The tension highlights a growing divide in crypto between those who believe in financial engineering as a path to adoption and those who think real-world utility is what ultimately matters.
