Ripple CEO says bitcoin remains attractive but criticizes Strategy's funding model

Ripple's chief executive said bitcoin retains long-term value while arguing that Strategy's preferred-stock issuance has damaged broader crypto market sentiment. The comments came as Strategy's STRC shares fell to a record low. The executive criticized the 11.5% dividend structure used to fund bitcoin purchases, calling it financial engineering that distracted investors.

STRC shares traded about 25% below their $100 target level after hitting a record low on Thursday.

Bitcoin price and market pressure Bitcoin traded below $59,000 during the same period, adding pressure on the funding model. Strategy paused new share issuance when the preferred shares fell below par. A research firm noted that the cash cushion supporting STRC dividends had declined from more than seven years to about 14 months of coverage.

Views on asset utility The executive separated criticism of the funding approach from his outlook on bitcoin itself, stating that lasting value comes from usefulness rather than share structures. Strategy's common shares also reached their lowest level since February 2024 and closed near $82 on Friday.