Following the fall of the Bitcoin by $59,000, the controversy over the Strategy financing model continued to rise. According to Ripple CEO Brad Garlinghouse, he still sees bitcoin, but believes that Michael Saylor ' s buying of bitcoin through preferential share financing has slowed down the wider encryption market.

Garlinghouse still looks after bitcoin.

Garlinghouse distinguished the problem from bitcoin itself. He stated that he remained optimistic about his long-term prospects for the comparison of TT money, but that the long-term value of digital assets ultimately depended on actual use rather than on complex financing structures.

He referred to Strategy's approach as “financial engineering” and stated that it could not create long-term value. In his view, market attention was being diverted from financing design, which in turn weakened the overall performance of the industry.

STRC drops face value into question

One of the points of contention was Strategy's STRC priority unit. The product is set at 11.5 per cent dividends, with a target of trading near $100, but has recently fallen to a low record level of about 25 to 26 per cent below face value.

At the same time, the Strategy General Unit has fallen to its lowest level since February 2024, with approximately $82 on Friday. Bitcoin synchronised down to $5.9 million, increasing market interest in the degree of pressure on the financing model.

  • STRC set dividends of 11.5%
  • The stock price was about a quarter lower than $100.
  • Strategy, general stock down to stage low.

The market began to reassess the financing engine

In a report, CriptoQuant stated that Strategy should suspend the purchase of bitcoin and give priority to the reconstruction of cash reserves. According to the agency, the buffer period to cover STRC dividends has been reduced from more than seven years to about 14 months.

It was also noted that when the STRC price was less than $100, Strategy ' s re-purchase of bitcoin through the issuance of the relevant securities would be significantly hampered, which was an important reason for the company ' s current suspension of the mechanism.

However, not all analysts share this view. According to the Benchmark-StoneX analyst, Mark Palmer, Strategy ' s financing engine was inefficient, not completely ineffective. He also objected to the direct analogy between STRC and assets that had crashed.

The debate has shifted from a purely dobitcoin-oriented focus to whether the market can continue to accept a currency purchase model that relies on a capital market window. With the fall of bitcoin, the stability of the relevant financing instruments is being tested more directly.