Strategy’s STRC sinks 26% as Ripple CEO slams Saylor

3 hours ago

Newsroom

Why did Strategy's preferred stock plunge by 26% and what does this mean for shareholders?

How does Strategy's current market capitalization compare to its Bitcoin holdings, and why is this significant?

What financial risks is Strategy facing due to its continued leverage and dividend policies?

Strategy’s STRC sinks 26% as Ripple CEO slams Saylor — Image source: Unblock Media

Ripple CEO warns of cash crunch as STRC trades 26% below par, highlighting dividend risks.
Analysts urge Strategy to pause Bitcoin buys as company’s market valuation slips below asset value.

On June 26, 2026, CNBC reported that Ripple CEO Brad Garlinghouse publicly criticized Michael Saylor and Strategy’s financial engineering after the company’s Bitcoin-focused perpetual preferred stock (STRC) closed at a 26% discount to par value. Garlinghouse pointed to significant cash pressures caused by Strategy’s leveraged approach, describing STRC’s closing price of $74.57—well below its $100 par value—as “a pretty damning indictment” of Saylor’s model.

Garlinghouse warned that this structure has left Strategy with $1.2 billion in annualized dividend obligations and ballooning risk from needing to sell Bitcoin to fund payouts. He referenced May’s $2.5 million in Bitcoin sales, noting that these pressures have driven shares near $82, their lowest level since February 2024, and worsened sentiment in the wider crypto market.

On June 26–27, 2026, The Block and CoinDesk provided further context, reporting that Strategy’s enterprise market value relative to its underlying Bitcoin holdings (mNAV) had dropped below 1. This shift means investors now value the company lower than its Bitcoin assets, a marked departure from its historical trading premium. Analysts from CryptoQuant and other research firms urged Strategy to slow or halt further Bitcoin purchases and focus on rebuilding cash reserves. They noted that the company’s financial runway to meet dividend payments has shortened from seven years to about 14 months.

While Saylor has reaffirmed his commitment to a Bitcoin-first strategy, skepticism has increased amid the slump in both STRC and Strategy’s common stock, raising questions about the sustainability of their aggressive approach.

As of June 27, 2026, 15:09 UTC, Bitcoin (BTC) is trading at $60,603.14 with a 1.44% change in 24-hour trading volume, according to CoinMarketCap. XRP (XRP) is trading at $1.068, with a 3.13% change.