Ripple CEO Brad Garlinghouse criticizes Strategy’s Bitcoin funding model
As Bitcoin fell more than 3% toward $58,000, Brad Garlinghouse and Bitwise CIO Matt Hougan said Strategy’s role as a steady one-way Bitcoin buyer is weakening under its revised financing approach.
Ripple CEO Brad Garlinghouse criticized Strategy’s Bitcoin funding model as Bitcoin fell more than 3% toward $58,000 on Tuesday and investors reversed an initial positive reaction to Michael Saylor’s financing overhaul at Strategy Inc. Bitwise Chief Investment Officer Matt Hougan said Strategy is unlikely to remain the same one-directional Bitcoin accumulator it was for years, and may buy and sell more flexibly depending on market conditions, though he does not expect the current structure to force tens of billions of dollars of annual Bitcoin sales. The remarks intensified debate over whether Strategy, one of the largest corporate Bitcoin buyers, can remain a steady source of market demand and how its capital-markets-based treasury strategy may perform during periods of crypto-market stress.
- BTC: Ticker symbol for Bitcoin.
- Strategy Inc.: Company known for large Bitcoin purchases.
- net buyer: An investor that buys more than sells.